LONDON (SHARECAST) - Persistant fears about slowing demand amid the economic downturn pushed crude to a two week closing low. The strengthening dollar also weighed on crude prices.
The global crisis has exacerbated fears about dwindling demand which has seen prices fall below the $100 mark from its high of over $147 a barrel back in July.
Crude oil for November delivery fell $4.56 to close at $93.97 a barrel on the New York Mercantile Exchange.
Traders kept a close eye on Wall Street's progress. US markets fell sharply Thursday, with the Dow closing at a 3-year low as traders monitor the $700bn rescue plan for the financial sector. With the bail-out already approved by the US Senate, its now the turn of the House of Representatives to consider the plan Friday.
Investors flocking to gold's safe haven qualities at the start of the week saw Wedneday's u-turn continue Thursday with gold for December delivery falling nearly 5%.
The stronger dollar eroded gold appetite with the December contract losing $43 to close at $844.30 an ounce on the Comex division of the New York Mercantile Exchange. The greenback rose after the US Senate's approval of a revised bail-out plan.
Silver for December fell $1.65 to settle at $11.12 an ounce while platinum for October fell $50.10 to $979.60 an ounce.