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Light oil price trading under $76 on weak US demand
Published on January 22, 2010 by oilprices · No CommentsUS Light oil price fell below $76 a barrel in trading on Friday in Asia, dampened by evidence of weak crude oil demand after US government figures showed the United States continues to use less energy than in 2009. US Light oil futures shed 21 cents to $75.87 a barrel at midday in Asia on the NYMEX, yesterday, Light oil prices dropped to $75.66, the lowest price since December 2009, before settling at $76.08, down $1.66.
The losses were also fueled by declines on Wall Street after President Barack Obama proposed tougher bank regulations, which may see less hot money flowing into commodities markets. Goldman Sachs and other major banks have helped funnel billions of dollars of speculative money into oil and natural gas contracts during the past several years.
“Market sentiment is bearish as fundamentals remain weak but prices could bounce back if it hits $75. There will be some support for oil prices at this level,” said Clarence Chu, a trader with Hudson Capital Energy in Singapore.