Oil slid to its lowest level in 2 months on Thursday as US drivers finally eased off the Gas and the worlds energy watchdog said there was no pressing need to dip further in to emergency fuel reserves. US data showed on Wednesday that the worlds biggest consumer was burning through less fuel than a year ago. News allayed concerns the US Could run short of heating oil and gasoline with a dozen US refineries still shut by hurricanes. US crude was down $1.9 at $60.9 a barrel ,its fifth straight day of losses. Prices may have pulled back a long way from late Augusts record high-$70.85 for US crude but in real terms they are still close to levels unseen in a quarter of a century. The European commission forecast euro zone economic growth could slow in 2005 and noted risks from expensive oil.Claude Mandil,Head of the international energy agency, said in paris, "I am struck that there is some demand destruction related to both high Prices and logistic constraints. Some analysts argued that prices may yet rebound as supplies of winter fuel are threatened by the delayed recovery of hurricane -battered US Refineries. A dozen refineries ,accounting for 18% of US total capacity ,remains shut After hurricanes Rita and Katrina , a daily loss of more than 1.3m barrels of gasoline.
Posted On : 10/8/2005 2:55:51 PM