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Crude futures record biggest one-day drop in 4 years

(Xinhua)
Updated: 2008-08-23 09:24

NEW YORK -- Crude prices fell more than 5.4 percent on Friday, the biggest one-day drop since 2004 as the US dollar rose against major West currencies and renewed concerns on weakening global demand.

Light, sweet crude for October delivery fell 6.59 dollars to 114.59 dollars a barrel on the New York Mercantile Exchange.

The US dollar's rise against major West currencies encouraged the heavy sell-off after crude prices jumped more than 5 dollars a barrel Thursday.  

Crude prices were also dragged down by several reports. A report from the US auto and travel group AAA said that Labor Day holiday travel was expected to fall this year by the largest amount in at least eight years due to high gasoline prices.

Meanwhile, OPEC was expected to raise its oil outputs by 450, 000 barrels per day in August, that could further beef up inventory levels in consumer nations.

Worries about tensions between Russia and the West countries were eased as Russian troops began withdrawing from key Georgian positions on Friday.

In London, Brent crude fell 6.24 dollars to 113.92 dollars a barrel.