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Crude price dives on stronger dollar
29.09.08
Brent Crude plunged back below $100 a barrel today as fears gripped the market once more of a slowing worldwide economy.
The price on the benchmark Brent November delivery was down $5.61 at $97.93, one of its biggest-ever falls, as markets fretted over the deliverability and impact of the $700 billion Paulson bailout of Wall Street.
On New York's Nymex exchange, oil was down $5.62 at $101.27 a barrel.
It had been firmer at the end of last week on fears of the path and status of Tropical Storm Kyle in the oil-producing Gulf of Mexico.
This week, however, traders believe that oil is tracking the strength of the dollar, which was up by more than four cents at one stage against the pound today.
"We expect the strong dollar/weak oil correlation to continue in the short term," said specialist oil trading house ODL Securities.
