Oil slumps to $46 as turmoil hits demand

Dubai: Global oil prices slumped to $46 (Dh169) a barrel on Tuesday, reaching the lowest point in almost four years as global energy demand weakened amid a widespread economic slowdown.

The slump came as a world oil sector review prepared by Global Investment House said falling oil price was a matter of concern to Opec and GCC oil producing countries.

On London's InterContinental Exchange (ICE), Brent North Sea crude for delivery in January hit $46.02 - the lowest point since February 18, 2005. The contract later recovered slightly to stand at $47.43 a barrel.

On Tuesday, light sweet crude for January delivery fell to as low as $47.36 on the New York Mercantile Exchange (Nymex). That was the lowest level since May 2005 and followed a dive of $5.15 on Monday. Later Tuesday, light sweet crude was down 75 cents at $48.53 a barrel.

The Organisation of Petroleum Exporting Countries, which pumps 40 per cent of the world's crude, met in Cairo on Saturday to assess the state of the oil market but held off from making any decision on cutting production. Instead, energy ministers decided that any output move would be made when they next meet in Oran, Algeria on December 17.