21 Dec :The price of New York oil sank under USD 34 per barrel on Sunday for the first time for more than four and a half years, as weak global demand overshadowed a recordOPEC output cut, traders said.
The fresh falls prompted OPEC President Chakib Khelil to stress that the cartel would continue cutting output until prices stabilise.The New York contract expiring below USD 34 a barrel, as weak global demand weighed on the market.
The benchmark contract’s expiration on Saturday prompted intense speculative action, analysts said. The contract for New York’s light sweet crude for delivery in January expired at 33.87 dollars a barrel, down 2.35 dollars from its close on Thursday.
The contract dived to an intraday low of 32.40 dollars, a level last seen on 9th February, 2004.The New York contract for delivery in February, which becomes the market reference beginning Monday, finished 69 cents higher at 42.36 dollars.
In London, Brent North Sea oil for February delivery rose 64 cents to settle at 44.00 dollars.