Light oil price trading below $80 mark on higher US dollar

NYMEX Light oil prices fell in trading for the second day to below $80 a barrel amid fears that China will take further measures to cool the country’s growth. US Light crude oil futures for April delivery closed down $1.44 at $79.80 a barrel on the New York Mercantile Exchange. It’s been nearly two weeks since Light oil prices dropped below the $80 a barrel mark.

Trading was also cautious ahead of the Federal Reserve’s decision on interest rates this week. OPEC’s meeting in Vienna is scheduled for Wednesday but members aren’t expected to make any changes.

MF Global analyst Mike Fitzpatrick said, “A great deal of skepticism is creeping into the market about the sustainability of a market recovery,” which has fueled concerns that consumers will keep their cars parked and watch their energy use closely.

Adding downward pressure to demand, Fitzpatrick said energy markets have been hampered by a “slack demand season” as the heating season draws to a close and the summer driving season has not yet begun.

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