Bourse

Home page

Bourse

Oil prices drop after OPEC decides against output cut

16 March 2009 07:59 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. Oil fell over 3 percent to below $45 a barrel on Monday as traders questioned whether OPEC’s decision to enforce better compliance with previous curbs rather than make new production cuts was enough to offset eroding global demand, reuters reported.
At its meeting on Sunday in Vienna, OPEC agreed to enforce existing curbs more strictly and said it would meet again at the end of May to review progress, surprising some traders who had expected the group’s more hawkish members to prevail.
U.S. light crude for April delivery fell $1.73 to $44.52 a barrel by 12:40 a.m. EDT, after having earlier dropped as low as $43.85. London Brent crude fell $1.52 to $43.41.
OPEC’s adherence with previous cuts has been estimated at about 80 percent and full compliance would take away more than 800,000 barrels per day.