The price of US crude slid by almost two dollars to its lowest level in six weeks with industry experts saying that trader are totally focused on the effects on demand that would come from a global economic slow-down led by top energy consumer the United States. Even a weather related shut down of Mexican output failed to boosted prices.
US light crude slipped below 89 dollars a barrel, down over 11% from its high of just over 100 dollars at the start of the year. Brent fell well below 88 dollars a barrel.
There was no floor trading at the New York Mercantile Exchange on Monday as it was closed because of the Martin Luther King holiday but electronic trading continued.
Speculators, such as hedge funds, on NYMEX are becoming nervous, and have pulled away from positions that anticipate a rise in prices according to the latest data from the US commodities regulator.