NEW YORK, Oct. 10 (Xinhua) -- Crude prices plunged
below 80 U.S. dollars a barrel Friday amid global sell-off on rising concerns of
a worldwide recession and shrinking energy demand.
Light, sweet crude for November delivery fell 8.63 to
settle at77.70 dollars a barrel on the New York Mercantile Exchange, the lowest
settlement price in 13 months.
"It is clear the many market participants have thrown
in the towel as witnessed by the double digit correction in the stocks of
companies that comprise the energy complex," Wall Street Strategies' senior
research analyst Conley Turner told Xinhua.
Energy stocks have fallen alongside global sell-off
on fears that financial crisis could lead to worldwide recession. Shares of
Exxon Mobil Corp., one of the largest energy companies in the world, hit a
52-week low on Friday.
"The selling is by all intents and purposes has
become indiscriminate. Fundamentals clearly does not matter in this environment
as fear appears to be the prevailing sentiment," said Turner.
"Also, in an effort to satisfy redemptions, it
appears that many funds are selling their more profitable energy positions en
masse," he added.
Also on Friday, the International Energy Agency
(IEA), a Paris-based energy watchdog agency, cut its forecast for oil demand
this year by 240,000 barrels per day and 440,000 barrels per day for 2009. The
IEA now expects global oil demand to total 86.5 million barrels per day this
year and 87.2 million barrels per day next year.
Crude has lost almost 50 percent of its value since
hitting a record of 147.27 dollar a barrel on July 11 as the financial crisis
drives down energy demand.
The Organization of the Petroleum Exporting Countries
said Thursday it will hold a special meeting on Nov. 18 to discuss how the
economic crisis is affecting oil prices. The head of Libya's national oil
company, Shukri Ghanem, called on oil producing nations to cut output.
"This is clearly turning out to be the buying
opportunity of a generation for oil and oil related stocks," said the analyst.
"The caveat is that stability needs to sets in. There
is significant price and value dislocation in this market which in the long run
spells opportunity," said Turner.
Dow Jones average dips below 8,600 on
panic sell-off
NEW YORK, Oct. 9 (Xinhua) -- The Dow Jones Industrial
Average dipped more than 7 percent Thursday as panic sell-off dominated markets.
Investors worried that higher borrowing costs could make
carmakers, insurers and energy companies the next victims of the credit crisis.
Full story
Wall Street trades mixed after
dramatic intraday shake
NEW YORK,
Oct. 10 (Xinhua) -- Wall Street ended mixed Friday after a dramatic intraday
shake as investors hunted for bargains after seven days of massive losses.
The Nasdaq composite index finished with a modest gain,
while the Dow Jones industrials and the Standard & Poor's lost ground in the
final session. Full story
