Crude oil prices plunged below $50 on Monday amid speculations...
Crude oil prices plunged below $50 on Monday amid speculations that Senator John Kerry?s almost evident win could ease the geopolitical situation and hence, ease oil prices.
During the session on the NYMEX, US light crude tumbled to $49.40 a barrel, but then it retraced slightly to $49.92 a barrel, down $1.84, or 3.6 per cent. US crude has been a month above $50, peaking a week ago at $55.67. London Brent futures lost fell $2.08 to $46.90 a barrel at IPE.
Energy analysts said a win for the challenger Kerry in Tuesday's US poll could mean lower crude prices than if President George W. Bush is re-elected. Latest opinion polls can barely separate the two.
They say that Bush is more likely to be aggressive in the Middle East, particularly in Iran. The Bush administration continues to add crude to the strategic oil reserves, the national strategic petroleum reserve, despite high prices.
Kerry says he would stop filling the reserve at current prices to keep more crude on the market. That difference is important for a world oil market suffering a shortage of light, sweet crude, which makes up about 40 per cent of the SPR.
A Kerry victory could also mean more financing for renewable energy source and trigger a push for tighter mileage standards for gas-guzzling sport utility vehicles.
