Commodity Daily News

Oil Prices Slid As Investors Reacted To Developments in Georgia

Crude Oil prices slid to a 4 month low yesterday after Russia announced the end of military operations in Georgia and the International Energy Agency forecasted a steep drop in demand.
New York's main contract, Light Crude for September delivery, sank $1.44 to $113.01 dollars a barrel, the lowest level since April 15.
Geopolitical concerns always provide good support for Oil prices and this news should offer some relief to investors worried about exports of Azeri crude from ports in Georgia. The decline in Oil prices also was supported as the USD hit a near 6 month peak vs. the EUR, pressuring demand for the dollar-priced commodity. Signs of slowing global demand were further confirmed by a report from the US Energy Information Administration. The Energy Information Administration said in its monthly report that oil demand was slowing in advanced economies as people ease up on driving, supplies are rising and the market is set to cool well into next year.