Thursday, July 24, 2008

Oil Tumbles USD 4 on Slumping Demand.


NEW YORK (CNNMoney.com) -- Oil prices continued to decline Wednesday, after a government report showed stronger-than-expected inventories and a Federal Reserve report showed a weakening economy. Light, sweet crude for September delivery fell USD -3.98 to settle at USD 124.44 a barrel on the New York Mercantile Exchange.

Oil has tumbled nearly USD -23 since setting a record of USD 147.27 just eight trading days ago on July 11. Prices have not been this low since June 4.

The September futures contract became the so-called front-month contract as the August contract, which fell USD -3.09 to settle at USD 127.95 a barrel in the previous session, expired Tuesday.

Oil settled down USD -3.51 from Tuesday's front-month settle. Oil futures contracts typically expire with seven trading days left in the month.

Hopefully the Barisan Nasional government will announce some special insentif in the coming month of August. May be a drop in fuel prices of about RM 0.10 to RM 0.20 per liter. Cross your finger. Any adjustment to the fuel prices will definately help the share market.

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