Oil prices continue to plummet

Crude oil futures continued to plummet today on the belief that fuel supplies in the United States will be adequate to deal with its coming winter.

Light, sweet crude for December on the New York Mercantile Exchange fell 24c from its overnight closing to $47.13 per barrel in after-hours electronic trade early today. The benchmark was at its lowest level since more than seven weeks ago, when Nymex oil closed at $47.10 on September 21.

Prices are roughly 70% more than a year ago, but would have to surpass $90 per barrel to reach the inflation-adjusted peak set in 1980.

In London, Brent crude for December delivery plunged $2.21 to close at $43.71 per barrel on the International Petroleum Exchange.

Still, the market remains jittery due to the world’s limited supply cushion, only about 1% of the 82.4 million barrels consumed daily worldwide, and events in Iraq and Nigeria are being closely watched.

In Iraq, militants have vowed to disrupt Iraq’s badly needed oil exports, and an export pipeline already has been knocked out by saboteurs.

Meanwhile, in Nigeria, a looming general strike moves closer to its start date of November 16 to protest domestic fuel prices.