Oil prices below $70 and falling

15 December 2009

Written by John King

Crude oil prices moved lower for the tenth day in a row this morning (December 15th), with the headline contract on the New York Mercantile Exchange edging towards $69 (£42.40) a barrel.

The falls were once more attributed to a fundamental weakness in demand, with traders apprehensive about the latest weekly inventory figures from the American Petroleum Institute later today.

The data will be treated as a gauge for demand for crude and associated products such as heating oil, propane and gasoline.

In the first two weeks of December, crude prices have endured the longest slide seen since July 2001 as traders became concerned about demand fundamentals.

"Normally, demand perks up during the winter, but so far demand has been abnormally weak and this has been a major concern. We could see oil heading down toward $65," said Michelle Kwek, an analyst with Informa Global Markets in Singapore, speaking to Reuters.

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