Oil prices slide world markets

Oil prices slide world markets
# 16 December 2008 09:48 (UTC +04:00)
Baku. Vahab Rzayev - APA-Economics. Crude oil fell on speculation that OPEC production cuts may be insufficient to bolster prices as the global recession curbs fuel consumption, reports Bloomberg.
Crude oil for January delivery fell $1.77, or 3.8 percent, to settle at $44.51 a barrel at 2:43 p.m. on the New York Mercantile Exchange. The price has tumbled 70 percent from a record $147.27 on July 11.
Brent crude oil for January settlement declined $1.81, or 3.9 percent, to settle at $44.60 a barrel on London’s ICE Futures Europe exchange.
Industrial production declined 0.6 percent in November, the third drop in four months, the Federal Reserve said today in Washington.
The Organization of Petroleum Exporting Countries will probably lower production targets by at least 2 million barrels a day, or 7.3 percent, at a Dec. 17 meeting in Oran.
Global stockpiles can meet 57 days of world demand, five days more than the five-year average, OPEC President Chakib Khelil said.
he group, which agreed in October to reduce production by 1.5 million barrels a day starting Nov. 1, has implemented 75 percent of the cut, Khelil, who is also Algeria’s oil minister, told reporters in Oran.
“Everybody supports the cuts, I don’t have any doubts about it,” Khelil said. “The Saudis have reduced their supply to the market by 8 percent, which has had an effect on the market.”