Oil prices fell to their lowest level in 20 months on Tuesday, as weak economic growth continued to reduce consumption around the world. Crude oil futures on the New York Mercantile Exchange settled at $59.33 a barrel, down 5%. Prices have plummeted since hitting a peak of $145.29 a barrel in July.

World oil prices weakened in Asian trade on Wednesday on renewed worries about energy demand in the face of slowing global growth. New York’s main contract, light sweet crude for December delivery, fell $1.05 to $71.13 a barrel from its close of $72.18 in the US on Tuesday. The contract for November expired on Tuesday, closing at $70.89, reported the The Straits Times.

Oil prices plunged below $93 on Monday 15 Sept 08, hitting seven-month lows.
Let’s see how fast the petrol companies here drop their prices.

Crude oil fell for the third consecutive day to $118 a barrel in New York, according to a Bloomberg report. Crude oil for September delivery fell 0.9%, or $1.07, to $118.10 on electronic trading, as analysts predict further falls due to contracting demand from Europe and the US.

The price of oil rose $4.58 yesterday, its biggest rise since early July, closing at $126.77 a barrel. Overall, the price of oil has dropped 9.4% this month, its biggest fall since September 2006. A report by Goldman Sachs predicting that oil prices will hit $149 a barrel helped fuel yesterday’s rally.

Let’s hope this spike is an abnomally and pray that prices go down soon. This month’s 9.4% overall drop could be our silver lining yet.

Oil fell to the lowest price since May 08 yesterday, losing over $4 to reach $120.42. Analysts put the fall in price, despite a loss of production from Nigeria, down to weakening demand and a stronger dollar. Opec President Chakib Khelil said that he expected prices to eventually retreat to $80 or $70 but advised producers not to cut supply.