Oil Falls to Lowest in More Than 3 Years After OPEC Defers Cuts

[Purveyor]

Source: Bloomberg

By Mark Shenk

Dec. 1 (Bloomberg) -- Crude oil fell to the lowest close in more than three years after the Organization of Petroleum Exporting Countries deferred a decision to reduce output until its next meeting on Dec. 17.

OPEC said it will use the time to gauge the impact of a 1.5 million-barrel-a-day reduction agreed to in October. The group will trim production at its next meeting, its secretary general said today. Slowing growth means demand will be “much lower” than expected a month ago, OPEC said after a Nov. 29 gathering.

“OPEC sent a valentine to the bears,” said Tim Evans, an energy analyst with Citi Futures Perspective in New York. “Rather than announce a production cut over the weekend, they said they might cut when they next meet on Dec. 17. It looks like they missed an opportunity to support prices by making a cut sooner rather than later.”

Crude oil for January delivery declined $5.15, or 9.5 percent, to $49.28 a barrel at 2:47 p.m. on the New York Mercantile Exchange, the lowest settlement since May 23, 2005. It was the biggest one-day drop since Oct. 10.

Oil prices have tumbled 67 percent since reaching a record $147.27 on July 11 as the U.S., Europe and Japan face their first simultaneous recession since World War II.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=au4mADrYd4Hk&refer=home

[Parche]

1. WOW

So we all know we were manipulated by the 'Enron' style speculators........:hi:

[snappyturtle]

2. That's what I think......

:hi:

[bemildred]

3. This is deflation.

You don't see it every day.

[Psephos]

4. Exactly n/t