Prices of oil futures decreased again at the end of the month and if this trend continues, oil will register their biggest monthly drop since the beginning of exchange trade in raw materials during 1983 main reasons for the big drop in oil are concerns that the world will fall into a global recession that will inevitably have a serious effect on fuel consumption.
News contraction of the U.S. economy for the third quarter also negatively affect the oil. According to a report of the Ministry of Energy U.S. fuel consumption in the country has decreased annually by 8.9 percent in August.
Futures for delivery of light crude oil in December decreased by 2.59 percent to 64.25 dollars for a barrel. So from the beginning of October contracts have registered a decline of 36 percent. So far, the biggest monthly decline in oil prices and oil was recorded in February 1986, when contracts fell by 30 percent.
London Brent variety decreased even further today. Futures with delivery in December fell by 3.08 percent to 61.75 dollars for a barrel.
According to analysts Bloomberg functioning central banks this month will provide results and oil will increase. After the U.S., China and Japan decreased their interest rates, economists believe it will stimulate the economy, which in turn will help the consumption of oil.
16 of the 28 they asked by Bloomberg professionals (57 percent) projected growth in oil prices until November 7. Chance of more falls and the others believe that there will be no substantial movements in either direction.
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