falling demand

2 September 2008
Crude oil prices have fallen sharply, after oil facilities in the Gulf of Mexico were spared by Hurricane Gustav.


Falling demand

Fears of lower global demand for oil also pressured crude prices.

Oil traders speculated that slowing global economic growth would dampen demand for crude, even in booming China and India.

"The magnitude of this pullback suggests the market is fully focused on demand destruction," said oil analyst Jim Ritterbusch.

"The speculators, hedge funds, and other investors are getting out of this market on a major scale."

Opec, the association of oil producing countries, holds its regular meeting next week in Vienna, amid speculation some of its members - such as Iran and Venezuela - would like it to tackle falling oil prices.

Opec members produce about 50% of the world's oil supply