Business | Oil & Gas
Oil price falls below $64 on recession fears
Oil fell below $64 a barrel on Friday, as investors shrugged off a likely OPEC production cut to focus to signs of a prolonged global recession.
- Agencies
- Published: 09:13 October 24, 2008
Perth: Oil fell below $64 a barrel on Friday, as investors shrugged off a likely OPEC production cut to focus to signs of a prolonged global recession.
Asian stocks fell on Friday, led by a 7 per cent drop in Japan's Nikkei average and South Korean shares.
Bleak outlooks from world car makers and a barrage of job cuts by major US companies, including Chrysler and Xerox, have also deepened fears of an extended global recession.
US light crude for December delivery was down $3.23 at $64.61 a barrel. London Brent crude was down $3.41 at $62.51.
"If it wasn't for an expected OPEC cut, there is a strong possibility that oil prices would be falling a lot more considering how poorly Asian stocks are performing," said David Moore, a commodities strategist at the Commonwealth Bank of Australia.
OPEC ministers said on Thursday they had agreed they must cut output, but had not decided by how much.
Business Editor's choice
-
‘Wrong Way' Krugman
The source of our economic malfunction lies with government-mandated bank regulations
-
Greek exit could make Eurozone stronger
Departure will show limits of bailouts and allow remaining members to act much more like a unit
-
UAE upholds values of free trade
Recently released statistics confirm an established fact, namely that of the UAE embracing the free trade principle in general and imports in particular
