•Crude futures fell in early European trading Friday, amid fears that demand will continue to weaken, despite attempts by central banks to bolster the global economy, sources said. "It appears that the falling demand scenario is coming back into play on the back of poor global economic data," Robert Laughlin of MF Global said in a report.

•A series of interest rate cuts by central banks and various stimulus packages have failed to curb falling oil prices, sources noted. Front month ICE Brent crude futures are down 34.8% in October. "The upward move was slightly exaggerated. It is all well putting [central bank] plans into action but the recessionary impact and lack of demand is putting downward pressure on oil prices," a London-based broker said.

•In addition, weaker global demand and additional global refining capacity have pressured refining margins, limiting a crude oil recovery, sources added. "The main pressure point is the weakness of the gasoline crack, and products should continue to dominate today as we go through the expiry of the November product contracts," Oliver Jacob of Petromatrix said in a report.

Updated: October 31, 2008