NEW YORK — Oil plunged(猛跌) nearly 9 percent to settle below $100 per barrel(桶). Investors who had ridden a months-long rally fled the market Thursday because of concerns about weakening demand for fuel in the U.S.
The decline of $9.44 per barrel, or 8.6 percent, brings the week's loss for oil to $14.13, or 12.4 percent. Other commodities like silver and cotton have plunged as well.
Oil rose 35 percent from mid-February through the end of April. As it climbed above $100, economists warned that high fuel prices were taking a toll on(对……不利) the U.S. economy. Gasoline demand starting falling in March as motorists paid more at the pump; that trend was reinforced by industry and government studies released this week. On Thursday, worries about the job market ahead of Friday's key employment report added to concerns about fuel demand.
"More and more people were saying that oil was just too high," said Michael Lynch, president of Strategic Energy & Economic Research. "That got a lot of investors ready to run for the door. That's what they're doing now."
A higher dollar also contributed to Thursday's sell-off. Benchmark West Texas Intermediate crude for June settled at $99.80 per barrel on the New York Mercantile Exchange. That's the lowest settlement since March 16. Oil last had a one-day percentage decline this big on April 20, 2009. Back then a barrel of oil cost less than half as much as it does now.
Analysts also said the lack of any terrorist retaliation of the killing of Osama bin Laden eased concerns about the safety of the world's oil fields.
Oil and other commodities have been on a roll since around Labor Day, when the Federal Reserve indicated it would take more steps to boost the U.S. economy. The result: lower interest rates and a weaker dollar combined with increased global demand to boost prices for oil, precious and base metals and grains.
This year, uprisings in Libya and the Middle East gave a further lift to energy markets.
This week investors have reversed those bets on commodities and locked in profits.
The plunge in oil may be enough to keep pump prices from reaching a national average of $4 per gallon(加仑). Retail gasoline has surged 30 percent this year. It's risen for 44 consecutive(连续的) days to $3.985 per gallon.