9 Oct 2008

Price of oil down $US2.46/b

10:00 am on 9 October 2008

Oil prices have fallen on concerns about the impact of the global financial crisis.

US crude fell $US2.36 to $US87.70 a barrel by 1:35pm EDT (1735 GMT) on Wednesday, after hitting a fresh 10-month low earlier. London Brent crude fell by $US1.70 to $US82.96 a barrel.

Crude stocks in the United States rose 8.1 million barrels as inventories recovered from storm disruptions, according to the US Energy Information Administration's weekly report.

gasoline stocks also increased by 7.2 million barrels, while total demand for products over the past four weeks dropped 8.6% compared with a year ago.

OIl previously reached a record high price of $US147.27 a barrel on 11 July.