Oil prices fell below $120 a barrel today on expectations that the US economic downturn will erode consumer demand for crude products, the AP reports. The dollar's gains against the euro also contributed to lower prices. Crude futures have fallen about $27, or about 18%, since reaching a record high of $147.27 on July 11.
"The main factor weighing on oil prices is worries about oil consumption being weakened, especially in the US," commented one commodity strategist. Analysts at JBC Energy said the fact that markets were seemingly downplaying bullish factors like Tropical Storm Edouard and the Iran nuclear situation was a sign that "there is significant underlying bearish sentiment at play."