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New York, July 19:: Crude oil futures closed for a second day below USD 130 a barrel as news of an output cut in Nigeria failed to halt the week's sharp decline in prices.
Given the market's inability to spark a rally on Friday following the week's big sell-off, is it time to declare the energy bubble over?
Experts aren't ready to go that far just yet. Oil has bounced back from big drops more than once in its march to fresh records over the past year.
But sentiments are shifting. Experts who just days ago thought the market's meteoric run still had legs are growing cautious. Some say last Friday's high above USD 147 a barrel may be the last record the market sees - for now.
"If this is not the bubble's implosion, than it's a reasonable facsimile," analyst and trader Stephen Schork said in his daily market commentary. "Perhaps all we have witnessed was a replay of last August's sub prime induced sell-off. Time will tell. Nevertheless, for the time being we no longer care to hold a bullish view."
Light, sweet crude for August delivery fell 41 cents to settle at USD 128.88 a barrel on the New York Mercantile Exchange.
In London, Brent crude futures for September delivery dropped 88 cents to USD 130.19 a barrel on the ICE Futures Exchange.
An explosion that destroyed an Eni SpA oil pipeline in Nigeria's restive southern oil region was caused by aggrieved youths from a nearby community, a military official said on Friday.
Thursday's explosion caused a sudden drop in pressure halting production on pipelines carrying 47,000 barrels of oil a day. The pipes are owned by Agip, a subsidiary of Italian energy company Eni.
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