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Oil Falls: Blame the Credit Crunch for Crudes Decline?

Posted on October 08, 2008

The oil bulls have left the ranch.Shoo (AP)For the third time this week, OPEC said today it was going to have to cut production. The oil market's response: Crude shed $1 a barrel, falling below $90 .Some suggest that weakening oil demand amid the economic downturn explains falling crude prices. Jeffrey Currie at Goldman Sachs sees a more-specific cause: the credit crunch. The problem right now isnt a potential future decline in oil demand, he says. Its a lack of physical demand for oil and gasoline by retailers and storage operators right now just when the U.S. refining industry has recover...

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demand , economic