NEW YORK: Oil moved further southwards Wednesday on concerns that ongoing global economic turmoil would dent demand for commodities.
New York's main oil contract, light sweet crude for delivery in April, plummeted $US4.22 to $US105.20 per barrel. The contract, which had hit a record peak of $US111.80 on Tuesday, expires at the close.
Brent North Sea crude for May sank $US4.27 to $US101.29. It struck an all time peak of $US107.97 on Tuesday.
Moreover, on the London Bullion Market, the price of gold tumbled as low as $US941.48 per ounce. The precious metal had forged an historic pinnacle of $US10037.70 on Tuesday.
Earlier this week, commodity prices jumped to record heights, as they were energies by the weak dollar and as investors sought safe refuge for their cash from volatile world stock markets.
At the same time, however, traders are very worried that the global credit squeeze, which erupted last August and has yet to run its course, could have a considerable negative impact on commodity demand going forward.
Meanwhile, the US Energy Information Administration said overnight that American crude stockpiles rose by just 200,000 barrels last week. That was far less than market expectations for a gain of 2.3 million barrels.