OPEC decision fails to keep oil prices from falling

OPEC decision fails to keep oil prices from falling
# 18 December 2008 10:32 (UTC +04:00)
Baku. Vahab Rzayev - APA-Economics. Oil fell below $40 a barrel for the first time in more than four years as OPEC failed to convince traders that the glut in crude will diminish and the U.S. government said supplies climbed for the 11th time in 12 weeks, Bloomberg reports.
The Organization of Petroleum Exporting Countries agreed that the group’s 11 members with quotas will trim current production by 2.46 million barrels a day to 24.845 million barrels a day, OPEC president Chakib Khelil said in Oran, Algeria. OPEC has held four meetings in as many months in an attempt to stem the slide in prices.
Crude oil for January delivery declined $3.54, or 8.1 percent, to $40.06 a barrel at 2:47 p.m. on the New York Mercantile Exchange, the lowest settlement since July 13, 2004. Futures touched $39.88 during trading today. Prices have tumbled 73 percent from a record $147.27 on July 11.
Brent crude oil for February settlement declined $1.12, or 2.4 percent, to close at $45.53 a barrel on London’s ICE Futures Europe exchange.
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