LONDON, September 3, 2008 (AFP) – Oil prices closed modestly lower Wednesday as the market focused on demand amid a slowing global economy and signs that OPEC is under pressure to cut supply. New York’s main contract, light sweet crude for delivery in October, slipped 36 cents to close at 109.35 dollars a barrel after sliding almost six dollars by the close on Tuesday.
In London, Brent North Sea crude for October lost 28 cents to settle at 108.06 dollars.
Crude oil prices closed off earlier lows as the market continued to head south despite the shut-in of crude oil production and refinery outages in the Gulf of Mexico region after Hurricane Gustav made landfall Monday.
“Obviously, demand concerns are outweighing almost every other consideration. If the measurement of these concerns dates begins with crude oil’s peak on July 11th at 147.27 (dollars) then these demand calculations would be structural in nature, when in reality the actual demand shift has been only marginal, at best,” said John Kilduff, analyst at MF Global.
John Kilduff at Alaron Trading said: “Now it is clear that global demand is slowing as we have been predicting. And as we also predicted the rest of the w