RTTNews - Crude oil finished below $60 for a second straight session on Monday as demand concerns continued to linger. The drop took oil to an eight-week low.
Light sweet crude for August delivery closed at $59.69, down 20 cents on the session. Prices hit as low as $58.32 after earlier hitting as high as $60.67.
Oil has now dropped in eight of nine sessions on demand worries. Crude is down nearly 20% from the eight-month high of $73.38 reached in late June.
Oil dropped $6.84 per barrel last week. On Friday morning, the International Energy Agency kept its 2009 crude oil forecast virtually unchanged from last month, but did predict a rise for 2010.
A weaker dollar limited oil's losses on Monday as crude held some value as a hedge investment. The greenback moved modestly lower against the euro and tested the key 1.4000 mark and also fell below the 1.6200 mark against the sterling.
U.S. Treasury Secretary Tim Geithner warned Monday that despite progress, there are still significant risks to the global economy. However, the ability and willingness for countries to work together has done much to cushion the blow, Geithner said, and the recession will likely end in the coming months.
Oil traders awaited the Energy Department's weekly inventory data due Wednesday. Last week's report showed crude oil inventories decreased by 2.9 million barrels in the week ended July 3. Experts were expecting to see supplies dropped 3.2 million barrels. Gasoline inventories rose by 1.9 million barrels and distillate fuel inventories climbed by 3.7 million barrels.
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