The benchmark New York oil futures contract briefly fell below 90 dollars a barrel Monday in Asia after Wall Street's financial meltdown extended to Europe, triggering fears of a global slowdown, dealers said.
In late afternoon New York's main contract, light sweet crude for November delivery, hit a low of 89.96 dollars before rebounding to trade 3.43 dollars lower at 90.45.
London's Brent North Sea crude for delivery in November had already dropped below the 90-dollar mark, on September 16.
The Brent contract traded 3.70 dollars lower at 86.55 in late Asian trade on Monday.
World oil prices first broke through the 100-dollar level at the start of the year and touched record highs above 147 dollars in July. But they have fallen sharply since then on concerns that demand is slowing during the global financial crisis, dealers say.
"I think it's just sort of continuing the steepening gloom you are seeing," vice president of energy market analysts Argus Media in Singapore Jason Feer tpold AFP.
He said that in the absence of weather or political factors to influence oil prices, investors "are concerned about the economic issues."
On Sunday, BNP Paribas announced it is taking control of ailing finance group Fortis' operations in Belgium and Luxembourg, in a deal that will make Belgium the largest shareholder in the French bank.
Germany also sealed a public-private rescue plan for the country's fourth biggest bank Hypo Real Estate as the government extended a blanket guarantee for all personal bank deposits to avert panic withdrawals.
The announcements came on the eve of a meeting of European finance ministers in Luxembourg. They will seek to flesh out broad plans for restoring confidence in the crisis-struck banking system, agreed to over the weekend by Europe's biggest economic powers.
In late afternoon New York's main contract, light sweet crude for November delivery, hit a low of 89.96 dollars before rebounding to trade 3.43 dollars lower at 90.45.
London's Brent North Sea crude for delivery in November had already dropped below the 90-dollar mark, on September 16.
The Brent contract traded 3.70 dollars lower at 86.55 in late Asian trade on Monday.
World oil prices first broke through the 100-dollar level at the start of the year and touched record highs above 147 dollars in July. But they have fallen sharply since then on concerns that demand is slowing during the global financial crisis, dealers say.
"I think it's just sort of continuing the steepening gloom you are seeing," vice president of energy market analysts Argus Media in Singapore Jason Feer tpold AFP.
He said that in the absence of weather or political factors to influence oil prices, investors "are concerned about the economic issues."
On Sunday, BNP Paribas announced it is taking control of ailing finance group Fortis' operations in Belgium and Luxembourg, in a deal that will make Belgium the largest shareholder in the French bank.
Germany also sealed a public-private rescue plan for the country's fourth biggest bank Hypo Real Estate as the government extended a blanket guarantee for all personal bank deposits to avert panic withdrawals.
The announcements came on the eve of a meeting of European finance ministers in Luxembourg. They will seek to flesh out broad plans for restoring confidence in the crisis-struck banking system, agreed to over the weekend by Europe's biggest economic powers.
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