Oil prices fell nearly $1 to an 18-month low on Monday as slumping demand and the growing financial crisis offset OPEC plans to cut output.
U.S. crude fell 93 cents to $63.22 a barrel, the lowest settlement price since since May 29, 2007. London Brent crude settled down 64 cents to $61.41 a barrel.
Oil prices have dropped by nearly 60 percent from a record high $147.27 a barrel in July as global economic turmoil dents world fuel consumption.
Demand has fallen in the United States, the world’s top energy consumer, and in other industrial countries as the credit crisis infects the wider economy and begins to spread to emerging markets.
In China, apparent oil demand rose by just over 2 percent in September, the slowest growth in 10 months.
I am not ready to step up to add the U.S. Oil Fund ETF (AMEX: USO) to our model portfolio just yet, but I am getting much friendlier to the idea technically.
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