Oil fell below $40 (€28.5) today as demand concerns overshadowed Middle East crude supply fears amid the Israeli-Hamas conflict, with prices on track to end the year down 60 per cent, their biggest annual loss on record.
Crude jumped as much as 12 per cent yesterday after Israel launched its fiercest air offensive in the Hamas-ruled Gaza strip in decades and prepared for a ground assault, raising fears that enraged Arab crude-producing neighbours would react.
By this morning, US crude was down 24 cents at $39.78 a barrel, after having gained almost 1 per cent earlier in the day. London Brent fell 34 cents to $40.21.
Oil is heading for a loss of nearly 60 per cent this year, its biggest annual fall since futures began trading 25 years ago.
Reuters
