24 Sep 2008

Oil falls $US4 in price

6:03 am on 24 September 2008

Oil prices fell by $US4 on Tuesday - reversing direction after a dramatic rally on Monday - as dealers focused on slowing global energy demand and doubts over a plan to rescue the financial sector in the United States.

A rebound in the US dollar added to weakness across the commodities markets.

US crude for November dropped $US4.00 to $US105.37 a barrel by 1703 GMT on Tuesday, after rising by nearly $US7 on Monday. November Brent crude traded down $US3.85 at $US102.19.

U.S. October crude contract prices surged by almost 16% on Monday. There are concerns that political resistance to a $US700 billion bailout plan could delay its implementation.

Oil previously reached a record of $147.27 a barrel on 11 July.