Oil prices slump under US$50 on weak demand

In New York, light sweet crude for delivery in December dived to US$49.91 a barrel — the lowest level since January 18, 2007.

Brent North Sea crude for delivery in January tumbled to US$48.20 a barrel — last reached on May 24, 2005. The contract had closed on Wednesday at US$51.72.

Prices went on to recover slightly, with New York oil at US$50.98 and Brent at US$49.27.

Crude oil prices have plunged almost two-thirds since striking record highs above 147 dollars in July as a global economic slowdown dents world energy demand.

“The recent fall in prices largely reflects concern that OPEC is unwilling to make the oil output adjustments necessary to compensate for weakening oil demand,” said Dresdner Kleinwort analyst Gareth Lewis-Davies.

On Monday, the Organization of the Petroleum Exporting Countries (OPEC), whose members produce 40 percent of the world’s oil, said it was ready to intervene on a regular basis to help prop up prices.

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