World oil prices sink in Asian trade on recession fears
World oil prices sank in Asian trade Monday in tandem with plunges in global stock markets on fears of a global recession, dealers said.
OPEC's decision Friday to cut supply at a time of global financial turmoil was also seen as hurting the already weak outlook for energy demand, they said.
New York's main contract, light sweet crude for December delivery, slumped 2.73 dollars to 61.42 dollars a barrel.
Brent North Sea crude for December delivery fell below 60 dollars to an intraday low of 59.40 dollars, its lowest level since February 2007.
The plunge in oil prices mirrored that of stock markets globally as investors remain unconvinced government efforts to shore up the ailing financial system are enough to stop the world from sinking into a recession.
The announcement Friday by the Organisation of the Petroleum Exporting Countries (OPEC) that its output would be cut by 1.5 million barrels per day to 27.3 million barrels starting November was also seen as possibly dealing a blow to the weak global economy.
"OPEC is obviously aware of the problems facing the global economy," said David Moore, a Sydney-based commodity strategist with the Commonwealth Bank of Australia.
"They were responding to weaker oil consumption... It was quite a decisive move by OPEC on Friday," he said.
OPEC's number two producer, Iran, said Sunday the cartel was likely to cut back further on production if the latest reduction did not stabilise prices.
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