Concerns over the global economy continues to pummel oil prices, as it dropped to a 13-month low below $71 a barrel early Wednesday. Demand continues to shrink as consumers cut back on spending.
Most of this is based on the biggest oil consumer in the world, the U.S., where demand continues to diminish over the financial crisis.
November delivery for Brent North Sea crude fell to $70.70 a barrel, a $3.6 drop from Tuesday's close.
Delivery for November light sweet crude in New York also experienced a significant drop, falling as low as $74.93 a barrel, before recovering to $75.23 a barrel.
OPEC, which has taken the unusual step of meeting a month before their scheduled December meeting, has cut back its 2009 estimate for demand, citing the continuing economic climate in the U.S.
On Thursday there'll be an update on where U.S energy inventory stand, which will give a clearer picture on how the demand factor is playing out in the country.
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