Oil, Gasoline Fall as Terrorist Plot May Reduce Demand for Fuel

(Bloomberg) — Crude oil fell and gasoline plunged the most since September on speculation fuel demand will slow after U.K. authorities arrested 21 men planning to blow up airplanes heading to the U.S. from Britain.

The risk of attacks may cut travel and consumer spending, curbing economic growth. In the three months after the Sept. 11 assault, oil fell 35 percent. Prices also dropped today after BP Plc, the world’s third-largest oil company by market value, said it may keep part of the Prudhoe Bay oil field open. Oil surged on Aug. 7 when the company said it would shut all operations.

“The terror threats may be a drag on economic activity,” said John Kilduff, vice president of risk management at Fimat USA in New York. “This should put a chill on travel and result in less of a call for oil. Consumer confidence may fall, stalling global growth.”
Bloomberg