US oil falls below US$40 for first time in six years

Oil headed for its eighth straight weekly decline, as sliding stock markets worldwide added to worries that lacklustre global economic growth will hurt energy demand in an oversupplied market.
Oil headed for its eighth straight weekly decline, as sliding stock markets worldwide added to worries that lacklustre global economic growth will hurt energy demand in an oversupplied market.AFP

NEW YORK (AFP) - An oil market selloff on Friday pushed US benchmark West Texas Intermediate below US$40 a barrel briefly, a level last seen in February 2009.

WTI for October delivery, in the futures contract's first day of trade, quickly rebounded, hitting US$40 a barrel on the New York Mercantile Exchange around 5.15pm GMT (1.15am on Saturday, Singapore time), a decline of US$1.32.

In London, Brent North Sea crude for October delivery was trading at US$45.16 a barrel, down US$1.46 from Thursday's settlement and its lowest level since March 2009.

Oil headed for its eighth straight weekly decline, as sliding stock markets worldwide added to worries that lacklustre global economic growth will hurt energy demand in an oversupplied market.