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Oil prices fell in the Asian trade today after plunging more than five per cent overnight as the weakening global economy and eurozone debt crisis threatened energy demand.
New York’s main contract, West Texas Intermediate light, sweet crude for delivery in September, was down 92 cents at $85.71 a barrel in the morning trade after plunging $5.30 or 5.8 per cent in the US trade yesterday. It was the lowest closing price for WTI since February.
Brent North Sea crude for September delivery shed 13 cents to $107.12 after falling $5.98 or 5.3 per cent in London trade.
The crude price fall was “pretty much driven by macroeconomic concerns because of the weaker macroeconomic data that we have seen for the US so far,” said Mr Chen Xin Yi, commodities analyst for Barclays Capital in Singapore.
“The fear of a double dip recession with the slowdown in the US and the sovereign debt situation in Europe is having everybody biting their nails,” added Mr Adam Sieminski, chief energy economist of Deutsche Bank.
The steep drop in oil prices came as stock markets in the United States and Europe fell more than three per cent on global economic worries.
Asian stocks also plummeted in the early trade today following the carnage in the US and European markets.
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