Crude oil prices dropped below USD 78 mark on rising concern over global financial turmoil leading to the economic slowdown which would expect to scrap the energy demand.
The market sentiments also weighted on the news that the Organization of Petroleum Exporting Countries (OPEC) has lowered global oil demand figures for 2008 and 2009, saying that the downgraded forecast reflects the global financial turmoil and may lend credence to calls by some OPEC members for production cuts.
In the electronic trading of New York Mercantile Exchange, Crude for November delivery fell USD 3.03 to stand at USD 75.60 a barrel.
In the Indian future market also crude oil prices have dropped sharply taking cue from international market.
At the MCX, Crude oil November 2008 contract declined 5.45% to Rs 3,715 a bbl (7.50 p.m., Wednesday) after opening at Rs 3,930. It moved in the range of Rs 3,695-3,930.
Crude oil December 2008 contract fell 5.50% to Rs 3,785 a bbl. It opened at Rs 3,933 as compared to its previous closing of Rs 3,963. Crude oil January 2009 contract shed 5.34% to Rs 4,895 a bbl as compared to its previous closing of Rs 4,025.
