Lehman fear looms over crude oil futures
Crude oil futures continued its slide and hit lower circuit on the Multi
Commodity Exchange after it dipped below 92 dollar a barrel in the overseas
markets on fears that the worsening credit crisis may hurt global economy.

Crude, for far-month December contract tumbled by 5.77 per cent to Rs 4,330
per barrel at the MCX counter, clocking business volume of one barrel.

Similarly, November contract fell sharply by four per cent to Rs 4,332 per
barrel in a business volume of 289 barrels, while October contract moved
down 3.86 per cent to Rs 4,304 per barrel in a business volume of 5,288
barrels.

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Analysts said the weakness in crude oil futures prices was mostly attributed
to a fall of over four dollar, or four per cent to 91.79 dollar a barrel, a
seven-month low in the global markets after Lehman Brothers Holdings
collapsed, raising concerns of deepening global financial crisis.

Refineries along the Gulf of Mexico, escaping major damage from Hurricane
Ike, too weighed on the crude prices, they said.

Meanwhile, crude has declined 37 per cent from a record 147.27 dollar a
barrel on July 11 as high prices and slowing global economic growth reduced
energy demand.


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