Monday, August 11, 2008

Oil Drops Below $115 a Barrel

For today, at least, traders decided that slowing demand for the black liquid gold outweighs possible disruptions from the escalating conflict between Russia and Georgia, as the price of oil fell below the $155 a barrel mark Monday; the lowest level in three months.

For the day it fell as low as $112.72 on Globex, before rallying some to finish the session at $114.45 a barrel on the NYMEX. Even so, it did rise as high as $116 during the day. That rise was primarily attributed to the growing tensions in South Ossetia.

Depending on where the problems between Russia and Georgia lead to, for now it looks like demand will be the chief metric used to price the value of oil.

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