Oil falls to 56 USD

Friday, October 9, 2009

Oil prices fell on Monday to 56 dollars a barrel despite the Organization of Petroleum Exporting Countries (OPEC) said it was ready to intervene on a regular basis to help prop up the market.

Prices in London last week slumped to three-and-a-half-year lows close to 50 dollars, prompting the OPEC exporters' cartel to call an emergency meeting to discuss a mooted output reduction. Today in its monthly report, OPEC stated "closer monitoring and more frequent intervention are required."

The oil cartel is to hold an extraordinary meeting on November 29 in Cairo amid speculation that member nations will agree to cut output again in a bid to boost plunging oil prices.

Will Oil test the 50 dollar mark? Probably.


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