The price of New York crude oil sank on Friday to US$35.62, the lowest point for four and a half years, as prospects of weak global energy demand overshadowed this week's record Opec output cut, traders said.
At about 0930 GMT (5.30pm Malaysian time) on the New York Mercantile Exchange (NYMEX), light sweet crude for delivery in January tumbled as low as US$35.62 a barrel, which was last seen on June 29, 2004.
"The global recession continues to sap demand," said BetOnMarkets analyst David Evans.
"Even after OPEC cut production by more then two million barrels, oil prices have fallen below the 40 dollar per barrel level.
"Prices are likely to stabilise between the 35 and 40 dollar levels."
The Organisation of the Petroleum Exporting Countries (Opec), which produces about 40 percent of the world's crude, agreed on Wednesday to cut its daily output quota by 2.2 million barrels a day.
But the move failed to prevent oil diving to multi-year low points as traders also questioned whether all members of the 13-nation Opec cartel would fully enforce the reduction.
"Mengikut Perjanjian itu, tiap-tiap Negeri akan menerima 5% daripada nilai petroliam yang dijumpai dan diperolehi dalam kawasan perairan atau di luar perairan Negeri tersebut yang dijual oleh PETRONAS atau ejensi-ejensi atau kontrektor-kontrektornya".- Tun Abdul Razak, Dewan Rakyat (12hb. November, 1975)
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