Thursday, August 9, 2007
Likely due to people unwinding hedged positions which were long oil
NEW YORK (Reuters) - Oil fell on Thursday as worries over the U.S. subprime mortgage sector battered global markets, but losses were limited as refined products prices held firm on tight U.S. supplies. Mounting defaults in the U.S. subprime mortgage sector, which makes home loans to people with poor credit histories, roiled world stock markets again on Thursday after revelations that more large financial institutions in the United States and Europe had posted heavy losses on mortgage investments. A shortage of cash in money markets prompted the European Central Bank to add emergency liquidity.