The cost of oil fell from record peaks as there were signs that high prices might finally be starting to dampen demand. The price of Brent crude dropped to around 49 dollars, in the US oil was trading at just 52. Trader Eric Bolling said that more decisive news on the oil price will come later in the week.
“The Department of Energy will release a statistic showing the amount of crud oil in inventory in the US, and that will give us a better indication of where prices will go from there.”
US prices have tumbled nearly three dollars in two days from a record of high of $54.45 after an almost unbroken ten dollar climb over the past four weeks.
One of the causes of this fall might be the news that China, the engine behind this year’s explosive growth in fuel usage, has begun promoting fuel saving-measures and seeking alternatives to oil.