Oil falls to lowest in nearly 4 years

Thu Dec 4, 2008 7:41am GMT
 
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By Maryelle Demongeot

SINGAPORE (Reuters) - Oil fell below $46 a barrel to its lowest in nearly four years on Thursday, extending four consecutive days of falls as continued demand worries minimised bullish draws in U.S. oil stocks.

Oil prices have lost more than $100 a barrel since an all-time high of $147.27 hit in July, and some 16 percent from last week, as demand is seen weakening worldwide and analysts expect it to contract this year and next.

U.S. light crude for January delivery fell $1.16 to $45.63 a barrel by 6:55 a.m., off an earlier low of $45.30, the lowest since a $44.60 low hit on February 9, 2005.

Oil settled down 17 cents at $46.79 on Wednesday.

London Brent crude slid $1.34 to $44.10, up from an earlier $43.80 low.

"Stabilisation in macroeconomic expectations is likely to precede any switch in oil market sentiment away from a mainly demand-side focus," Barclays Capital said in its weekly oil data review.

Bullish oil data on Wednesday pushed prices higher during the session, when the U.S. Energy Information Administration said crude stocks fell 400,000 barrels in the week to November 28, against an expected 1.7 million barrels build.

Distillate stocks, which include heating oil, fell 1.7 million barrels to 125 million, against a forecast for a 300,000-barrel increase, while gasoline supplies dropped 1.6 million barrels, having been expected to rise by 900,000 barrels.  Continued...

 
A share trader is pictured behind a mock one dollar bill and a mock 500 Euro note symbolizing a consumer credit note, at the German stock exchange in Frankfurt, December 18, 2008. REUTERS/Kai Pfaffenbach
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