Crude oil plummeted and fell below 120 U.S. dollars a barrel for the first time since early May as Tropical Storm Edouard seemed unlikely to threaten oil operations in the Gulf of Mexico.
Light, sweet crude for September delivery slid 5.60 dollars to 119.50 dollars a barrel on the New York Mercantile Exchange, the lowest intraday trading price since May 6. The futures edged up later and settled at 121.41 dollars a barrel, trading down 3.69 dollars. Crude has lost nearly 18 percent off its trading record of 147.27 dollars a barrel achieved on July 11.
Monday's big sell-off came after reports showed that the Tropical Storm Edouard would not likely damage the offshore oil and natural gas drilling platforms in its path.
Crude was also pressured from the concerns that slowing economy would curb demand. The U.S. Commerce Department reported Monday that the consumer spending slowed in June as the shoppers struggled with rising food and energy prices.
In London, Brent crude for September delivery fell 3.50 dollars to settle at 120.68 dollars a barrel.
Source:Xinhua
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