Brent crude oil prices plunged underneath 60 dollars per barrel here on Monday, as traders responded to the potential impact of a global recession on energy demand.
At around 0840 GMT, Brent North Sea crude for December delivery dropped to 59.32 dollars per barrel, the lowest point since February 2007.
New York’s main contract, light sweet crude for December delivery, tumbled to 61.55 dollars a barrel, which was last seen in May 2007.
Crude oil prices have slumped since striking record high points above 147 dollars per barrel in July on supply concerns.
The Organisation of the Petroleum Exporting Countries (OPEC), in a bid to shore up falling prices, announced Friday its output will be cut by 1.5 million barrels per day to 27.3 million barrels starting in November.
However, the oil market has continued to fall, with OPEC’s decision to cut supply at a time of global financial turmoil seen as hurting already weak energy demand, dealers said.
The market has also been weighed down by the strengthening greenback, which makes dollar-priced crude more expensive for buyers holding weaker currencies and therefore tends to dampen demand.
The euro sank under 1.24 dollars in early London trading on Monday, hitting the lowest point for more than two years on fears of recession and the withdrawal of funds into the dollar, dealers said.
At about 0830 GMT, the European single currency plumbed as low as 1.2393 dollars, striking the lowest point since April 26, 2006.
(AFP & Zawya)