Oil fell for a second day as Japan entered its first recession since 2001 and China's largest crude producer said demand had declined ``sharply.''
Oil rebounded temporarily when a supertanker owned by Saudi Aramco was hijacked by pirates off the coast of Kenya. OPEC slashed its 2009 demand forecast for a third month as the looming global recession threatens fuel consumption. The group may wait until December to cut output, its president said.
``As the stream of bearish news continues unabated, oil prices are again under pressure,'' said Christopher Bellew, senior broker at Bache Commodities Ltd. in London. ``The only hope for a price recovery is a big production cut by OPEC or a shut-in of some high-cost non-OPEC production.'' in Bloomberg
“The overwhelming trend is that global demand is down sharply, led by the drop in the U.S.,” said Antoine Halff, head of energy research at Newedge USA LLC in New York. “It’s now becoming clear that the Chinese economy is being hit harder than expected by what is happening in the U.S. I don’t think we’ve fully factored in the slowdown in China.” in Bloomberg
Sentiment is bearish, oil is heading down.
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