Brent oil prices drop

28/09/2009

Brent oil prices dropped below $65 on Monday (September 28th).

The news comes as analysts look at the situation in the world's largest economy, where stockpiles are high and demand is seemingly low, the AFP reports.

Brent North Sea was down to $64.56, a drop of 55 cents.

Meanwhile, light sweet crude oil, New York's main contract, for November delivery dropped 58 cents to $65.44 a barrel.

Analysts from the Commonwealth Bank of Australia released a note to clients, saying: "International economic news was generally on the disappointing side of market expectations, leaving metal and oil markets lacking impetus."

They added that US economic data did little to reduce the concerns that demand for oil is currently low.

Oil prices had seen a slight increase on Friday due to tensions about the nuclear situation in Iran. However, it has been widely reported that US stockpiles are currently at high levels which has minimised the effect on prices.