Oil prices fell on Monday in international markets by as much as four dollars, below the level of 97 dollars per barrel, due to signs that Hurricane Ike spared key U.S. energy infrastructure, and turmoil in the U.S. financial system that fueled fears about the state of the global economy.
The price of oil in the U.S. market fell by 4.28 dollars, to 96.90 dollars per barrel, after briefly touching the lowest level in nearly seven months at 96.31 dollars per barrel. In the London market, the barrel decreased by 3.83 dollars to 93.75 dollars per barrel. The shaken U.S. financial system is facing unprecedented restructuring, after the financial giant Lehman Brothers filed for bankruptcy and sought protection from creditors, while Bank of America arranged to purchase Merrill Lynch, raising concerns that growing economic problems will further slow demand for oil.
Energy companies rushed on Sunday to assess damage to coastal facilities and oil companies, after the direct hit of Hurricane Ike on the Houston energy hub shut down a quarter of U.S. oil and refined product production, while millions of citizens were left without power. Initial reports from emergency officials and oil companies indicate minor damage to infrastructure, signaling a possible quick recovery in production, although initial supply issues may be expected.
