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Oil prices continue sinking

13 January 2009 09:46 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. -- Crude oil fell for a sixth day in New York, extending a weeklong 25 percent slump on speculation oil inventories increased last week as demand declines amid the deepening global recession, reports Bloomberg.
Crude oil for February delivery fell as much as $1.09, or 2.9 percent, to $36.50 a barrel in electronic trading on the New York Mercantile Exchange.
Futures declined $3.24 to $37.59 a barrel yesterday, the lowest settlement since Dec. 24 on concern OPEC output cuts wonâ€™t be enough to counter weaker demand. Oil is down 61 percent from a year ago.
Oil for February delivery is now at a 35 percent discount to the December future, a market situation known as contango where traders fetch higher prices for contracts for later delivery.
Brent crude oil for February settlement fell as much as 59 cents, or 1.4 percent, to $42.32 a barrel on Londonâ€™s ICE Futures Europe exchange. It declined $1.51, or 3.4 percent, to settle at $42.91 a barrel yesterday.