Crude prices continue to fall

8 October 2007

Crude oil prices continued to fall on Monday due to concerns about the state of the US economy.

The ongoing fallout from the sub-prime mortgage crisis has led to worries that the US economy could be about to slow down significantly, which would lead to a drop in the demand for oil-based products.

As a result, the price of US crude for November delivery fell by 22 cents to $81.22 (£39.84) a barrel on Friday, before losing a further 47 cents during Asian trading on Monday.

Similarly, London Brent crude dropped seven cents on Friday and a further 35 cents on Monday morning to reach $78.55.

However, the price is being supported by demand from China, which announced on Sunday that its net oil imports are growing.

China, which has some oil reserves of its own, imported a net 108.2 million tonnes of crude in the first eight months of the year, a rise of 18.1 per cent from the same period in 2006.