OIL FUTURES: Brent Crude Falls Below $90/Barrel, Now at $89.70
June 21 2012 - 3:00PM
Dow Jones News
By John Biers
Oil prices dropped below $80 a barrel in intraday trading
Thursday for the first time since last October, hit by myriad
factors, including fresh signs of anemic industrial activity in the
weakening economy.
Oil futures for light sweet crude on the New York Mercantile
Exchange were trading at $78.19, down 4% or $3.21, piercing the
psychologically important $80-a-barrel level. Brent oil futures in
London also declined, dropping $3.33 to $89.22 -- below $90 for the
first time intraday since December 2011.
The retreat comes as U.S. and global oil inventories remain
well-supplied and follows recent policy moves by the Federal
Reserve that fell short of the quantitative easing market
participants say is needed to stimulate the economy. Analysts also
pointed to a report released Thursday by the Federal Reserve Bank
of Philadelphia that showed a big drop in general business
activitiy within the factory sector.
"The market is under pressure and it's looking for a bottom to
slide to," said Gene McGillian, a broker and analyst with Tradition
Energy.