Oil price sinks again

A strong fall was registered by the WTI this morning during the first moments of opening at the New York Stock Exchange. The instant drop came short after the announcement by the Opec countries of the postponement to mid December to cut the general oil aupply and production. WTI contracts expiring in January lost only this morning 6.7%, where as the Brent's price, always expiring in January, plunged 6.39% at a price of $50.07 per barrel.

The oil cartel, which controls 40% of the world's production, said oil demand was weakwning fast, but agreed to wait until a meetin in Oran, Algeria, on December 17 to reduce further its output.

Further, Abdallah el-Badri, Opec's segretary-general, said that the reunion in Cairo was put into place as the Oil price reached its lowest levels in four years. As a consequence, most of the Opec countries believed that previously made cuts of 1.5 milliions of barrels were insufficient in order to "calm-down" price fluctuations.