Despite a record cut in production by OPEC yesterday, continued pessimism over world demand sent crude oil prices down to a near 4.5-year low. Oil prices have fallen more than 70 percent since record highs last July as economic problems cut demand. The AP reported today:
Light, sweet crude for January delivery edged up 47 cents to $40.53 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. Earlier, it fell as low as $39.19 — a level not seen since at least July 2004.
Overnight, the contract fell $3.54 to settle at $40.06 a barrel, after touching $39.88.
Read the full AP story here.