Oil prices lowest since February
By Barbara Hagenbaugh
USA Today
WASHINGTON — Oil prices plunged at the fastest rate in more than a year yesterday and fell below $60 a barrel for the first time in nearly eight months as high inventories and expectations for reduced demand weighed on prices.
A number of energy analysts, such as those at Wachovia, First Enercast Financial and BNP Paribas Commodity Futures, say prices will likely head lower in the days and weeks ahead, absent a major change in the oil landscape.
The price of a barrel of crude oil trading for future delivery fell $2.35, or 3.9 percent, to $58.68. That was the lowest price since mid-February and marked the steepest one-day percentage decline in prices since August 2005.
Oil prices have fallen 24 percent since peaking at $77.03 in July. Prices are poised to fall further, Wachovia economist Jason Schenker says.
"The market is under pressure from both the supply and demand side," he says.
What's happening:
"Right now, it looks like we're going to continue to slide," he says.
