Crude oil plunges to US$78-the year's lowest level

13-Oct-08

Crude oil for November delivery fell by 10% to US$77.70 a barrel on the New York Mercantile Exchange, the lowest settlement since Sept. 10, 2007. Brent crude oil for November settlement also dipped by 10% to settle at US$74 a barrel on London's ICE Futures Europe exchange, the lowest settlement since Sept. 4, 2007. Crude has fallen to its lowest level in more than a year, on weaker demand in the United States and elsewhere, as well as investors' fears of a possible recession. Will OPEC nations push for a production cut in a bid to push prices above the hundred dollar mark? At its next meeting in Vienna on November 18, OPEC will study the measures to be taken to cope, above all, with the oil market over the next six months in light of the worsening of the world financial situation. It seems that if Opec does not take a major decision to confront falling oil prices, investment conditions in the oil industry would be faced with a serious danger.