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.
Share this article
More from Oil & Gas
More from Business
Popular in Business
-
Budget travel
Airlines in the region
Take a pictorial look at some of the budget airlines in GCC
Business Editor's choice
-
Louvre, Golden Tulip hotel chains to expand in region
Dubai could host first establishment in 2010
-
Lending slows down in eurozone
Central Bank will this week announce revisions to liquidity-boosting measures
-
Global outcry over Dubai World restructuring is exaggerated
About 75 per cent of the $20b bond has already been subscribed
