OCT 25 SATURDAY
Oil Tumbles on Signs OPEC Cut Won't Halt Slide
as Demand Drops .
Crude oil tumbled to a 16-month low as OPEC's decision to
slash production by 1.5 million barrels a day failed to ease
concern that the global economic slump is curbing fuel
demand.
The 13 members of the Organization of Petroleum Exporting
Countries agreed to lower supply starting in November, oil
ministers said today at a meeting in Vienna. Prices have
dropped 56 percent from the record $147.27 a barrel reached
on July 11 as stock markets declined.
Crude oil for December delivery fell $3.69, or 5.4 percent, to
settle at $64.15 a barrel at 2:43 p.m. on the New York
Mercantile Exchange, the lowest since May 31, 2007.
Futures are down 26 percent from a year ago. The December
contract dropped 11 percent this week, the fourth straight
weekly decline.
Global oil demand may decline for the first time in 15 years in
2008 and stagnate next year, the Centre for Global Energy
Studies said in a report on Oct. 20. OPEC, the International
Energy Agency and U.S. Energy Department cut their
forecasts for growth earlier this month.
Brent crude oil for December settlement declined $3.87, or
5.9 percent, to $62.05 a barrel on London's ICE Futures
Europe exchange, the lowest settlement price since
March 21, 2007.
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