Oil prices fall to four-month low
Sep 3 2008 by Peter McCusker, The Journal
OIL prices have fallen to their lowest level for four months after the threat from a weaker-than-expected Hurricane Gustav faded.
Light, sweet crude for October delivery – above US $118 a barrel at one point on Monday – was trading at $105.46 a barrel on the New York Mercantile Exchange, the lowest since May.
The falling oil prices contrast with the record of almost $150 a barrel set at the beginning of July.
It helped boost the share prices of fuel-exposed stocks like British Airways and holiday firm Thomas Cook, which both rose 7%. Budget airline easyJet surged more than 10% on the falls. But the AA warned that motorists may not feel the impact of the lower prices at the petrol pump because of the current weakness of the pound against the dollar.
Because the pound is at a two-and-a-half-year low against the greenback, the wholesale cost of petrol and diesel – priced in US dollars – has increased. Average petrol prices peaked at 119.7p per litre for unleaded and 133.25p for diesel in mid-July but at the end of last weekend, these stood at 112.33p and 123.75p respectively.
