NEW YORK, Nov. 18 (Agencies) – Oil prices have fallen by more than $1, reaching $55.75 a barrel on the Singapore market amid news that OPEC may not cut production.
On Monday, US light crude for December delivery dropped $1.29 to $55.75 a barrel in Singapore, while in London, Brent crude fell by 89 cents to reach $53.35.
Oil prices were hit by news that the OPEC may not cut production at its upcoming meeting in Cairo and by reports that Japan and the Eurozone are officially in recession.
Oil prices have tumbled by almost two thirds since peaking at $147 a barrel in mid-July.
Following Friday's announcement that the 15-nation Eurozone has officially fallen into recession, Japan - the world's second-largest economy - confirmed Monday that it has slumped into recession for the first time since 2001. Fear that a global slowdown could weaken demand for crude is one of the key forces behind the recent downward trend in oil prices.
Iran's OPEC governor, Mohammad Ali Khatibi, has called for an output cut in order to stabilize prices. This weekend, however, OPEC President Chakib Khelil downplayed the possibility that the group would decide to cut production at its November 29 emergency meeting.
The Organization of Petroleum Exporting Countries cut quotas by 1.5 million barrels a day last month.
A stronger US dollar also helped push oil prices down, as speculators often buy oil futures as a hedge against inflation and a weaker dollar and sell when the dollar gains.
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