LONDON: Oil prices fell toward $100 yesterday as a stronger dollar and concerns over weakening global energy demand offset supply disruptions in the United States caused by Hurricane Ike.
US crude fell 76 cents to $101.82 a barrel by 1715 GMT after dipping as low as $100.10, the lowest since early April.
London Brent slipped 60 cents to $98.37 a barrel after dropping to a six-month low of 96.99.
Downward pressure came from a rising US dollar, which scaled a one-year high against the euro, and a report from the International Energy Agency (IEA) earlier in the week lowering its oil demand growth forecasts due to a slowing global economy. “A bearish development is likely to continue due to mid-term factors of lower demand amid a slowing global economy. The psychological $100 level will be tested,” said Japan’s Mizuho Corporate Bank said in a research note.”
Limited support came from Hurricane Ike, which paralyzed about a quarter of US crude oil production and more than 16 percent of its fuel production capacity.
The storm gathered strength as it churned through the Gulf of Mexico’s warm waters on a track that would take it west of the Houston energy hub by Saturday morning.
Product prices were gaining support from the approach of Ike, despite falls in crude oil.
