Crude futures fell below US$75 a barrel Wednesday, hitting a 13-month-low, on concerns that economic weakness will curb demand for energy consumption.
The U.S. government reported Wednesday that retail sales plunged in September by 1.2 percent in the United States, the world's largest energy consumer.
The Commerce Department said that crude inventories rose by 0.3 percent in August, the smallest gain in five months, a possible indication of concerns about the slowing economy.
Federal Reserve Chairman Ben Bernanke said Wednesday that efforts taken by the U.S. government to stabilize financial markets and free current credit crunch probably won't lead to a prompt economic rebound.
"Stabilization of the financial markets is a critical first step, but even if they stabilize as we hope they will, broader economic recovery will not happen right away," Bernanke told the Economic Club of New York.
Meanwhile, the Organization of the Petroleum Exporting Countries cut its forecasts for world demand for crude next year in its latest monthly report.
JP Morgan cut its average oil price forecast for 2009 to US$74.75 a barrel, citing the weak economic outlook.
Light, sweet crude for November delivery fell US$ 4.09 to settle at US$74.54 a barrel on the New York Mercantile Exchange.
(Xinhua News Agency October 16, 2008)
