Consumer Demand Dictates Pricesby Tim Manni
Oil prices dropped below $76 a barrel to $75.62 on Wednesday, hinging on fears that the shaky economy will continue to contribute to weak consumer demand:
Beyond fears that demand would slow, expectations that the latest snapshot of U.S. crude supplies would show additional builds also weighed on markets.
Light, sweet crude for November delivery was down $2.69 to $75.94 a barrel in electronic trading on the New York Mercantile Exchange by afternoon in Europe.
“The bailout may save the banks, but companies are still laying off workers and demand is going to suffer (said Gerard Rigby, an energy analyst at Fuel First Consulting in Sydney).”