Oil prices fall sharp Up to 6%


World crude oil prices, which have increased, again fall sharply. The broker again to get the signs that reinforce the perception that world oil demand will fall sharply.

In trading Monday (3/11/2008) in New York, light type of oil for delivery in December fall to the 3.90 dollar level to U.S. $ 63.91 per barrel.

In London, Brent type of oil delivery in December also fall 4.84 to the dollar level of U.S. $ 60.48 per barrel.

"It's destroying the price of oil today is data showing that U.S. manufacturing activity during October decreased to the low level in the last 26 years, which means increasing concern weakening demand," said Phil Flynn, of Alaron Trading analyst, as quoted from Reuters, Tuesday (4/11/2008).

"Manufacture should be a major indicator of demand for oil, but if this sector is weakened, then there must struggle hard to keep oil demand still rising," he added.

U.S. factor activity, the barometer for future oil demand, down sharply in line financial crisis. The Institute for Supply Management revealed, the national index of U.S. factory activity declined to 38.9 for October, compared to 43.5 for September.

Decrease in demand is also likely occur in Europe. European Commission warns that the previous worst financial crisis in a decade has been to Europe falling down the economic recession.

"European bring more focus to the demand for energy, where the weakening global economic growth provides a bleak prospect," said Mike Fitzpatrick of MF Global, as quoted from the AFP.