Crude oil fell for the first time in a week, paring yesterday’s record gain, as declining stock indexes signaled investor concern over a US government bailout plan for financial companies.
Oil dropped as the Europe’s Dow Jones Stoxx 600 Index slid on speculation growth in the US economy will slow, cutting energy demand. The October oil futures contract, which expired yesterday, had climbed by a record $16 a barrel to the highest since August 21 as traders unwound positions and the dollar declined the most against the euro since January 2001.
Crude oil for November delivery declined as much as $2.61, or 2.4 per cent, to $106.76 a barrel in electronic trading on the New York Mercantile Exchange. It was at $106.94 a barrel at 9:47 am London time.
Indian basket at $96.72
India’s crude oil basket rose $5.73 a barrel Monday to $96.72 (about Rs 4,396), data released by the petroleum and natural gas ministry showed on Tuesday. On Monday, Dubai and Oman crude prices increased by $5 and $5.07 a barrel to $94.20 and $94.47, respectively.
The Indian basket has averaged $97.12 per barrel so far this month.
