Finally! Oil Hits $99.99

It seems odd to celebrate this, but…

Bloomberg: Oil dropped below $100 a barrel in New York today for the first time since April amid forecasts that a slowing global economy will curtail energy demand.

Futures traded as low as $99.99 a barrel and have erased almost a third of their value since reaching a record $147.27 on July 11. Traders have shrugged off forecasts that Hurricane Ike will hit the Texas coast later today, an OPEC call for reduced supplies and a decline in U.S. inventories.

“This market is definitely marching to a different drummer than the one it was moving to before,” said Peter Beutel, president of energy consultant Cameron Hanover Inc. in New Canaan, Connecticut. “It’s not as interested in supply stuff anymore. It’s interested in demand.”

Crude oil for October delivery fell 66 cents, or 0.7 per cent, to 100.21 a barrel at 1:54 p.m. on the New York Mercantile Exchange. Futures dropped to the lowest since April 2.

Brent crude oil for October settlement dropped $1.15, or 1.2 per cent, to $96.49 a barrel on London’s ICE Futures Europe exchange. Brent closed at $98.97 a barrel on Sept. 10, the first settlement price below $100 since March 24. Prices dropped for 11 straight days through yesterday, the longest stretch since the contract was introduced in 1988.

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