Oil prices close to $66 a barrel

25/09/2009

Oil prices were close to $66 a barrel on Friday (September 25th) as concern about a lack of US demand preceded a plunge.

Crude for November settled at $65.89, the lowest since July 29th and a fall of $3.08, reports the Associated Press.

A period of stability has seen trading taking place at between $65 and $75 for months, following prices rocketing to $147 in July 2008 and then dropping to $32 that December, the newswire reports.

Clarence Chu, a trader at market maker Hudson Capital Energy in Singapore, said: "People have been too optimistic about the economy. The US and Europe are still losing jobs every month."

He added that if stockpiles increase further next week the prices could drop below $65 per barrel, but if that isn't the case a break from the now-familiar price range is unlikely.

It has been widely reported that stockpiles are at the highest levels in a number of years.