NEW YORK — Crude oil fell to the lowest price in more than three years on signs the US, the world’s largest energy consumer, may be in the longest slump since the Second World War.
Fuel demand has dropped as the US economy slowed. The US first entered a recession in December last year, the panel of economists that dates American business cycles said yesterday. Prices are also lower because Organisation of Petroleum Exporting Countries (Opec) ministers put off debate on a second cut in output in as many months during a meeting last week.
Crude oil for January delivery fell 4,3% to $47,18 a barrel at 2.20pm on the New York Mercantile Exchange.
Futures touched $47,08, the lowest since May 20 2005. Oil prices have tumbled 68% since reaching a record $147,27 on July 11.
Opec, the International Energy Agency and the US energy department slashed demand projections last month because of the economic outlook.
Oil prices will extend declines during the next 12-18 months if Opec fails to implement “sufficient cuts" and supply stays at current levels, according to Christof Ruehl, the chief economist of BP, Europe’s second-largest oil producer.
