Oil falls nearly $5 as OPEC cut fails to halt slide

[Ban Hammer 14,569]

LONDON (Reuters) – Oil slid nearly $5 a barrel on Friday as gloom about a global economic downturn that is sapping fuel demand took the steam out of an OPEC agreement to cut output.

Ministers of the Organization of the Petroleum Exporting Countries agreed at an emergency meeting in Vienna to take 1.5 million barrels a day of crude, about 5 percent of its supply, off the world market.

U.S. light crude for December delivery traded down $4.80 at $63.04 a barrel. Earlier it touched $62.85, its lowest since May 2007.

It has fallen $42 a barrel in a month.

London Brent crude was down $4.42 at $61.50.

Saudia Arabia's Oil Minister Ali al-Naimi said the group had agreed the output reduction with effect from November1.

Traders said OPEC's action might not be enough to arrest a slide that has seen oil down more than 50 percent from a record $147 a barrel in July.

"Already we've seen demand destruction of 2 million barrels per day. I'm not convinced this cut will be enough to stop the slide." said Rob Laughlin, at broker MF Global.

"We need to see what they plan on doing later this year."

Oil has plunged as the credit crisis hits economic growth and oil demand in the United States, the world's biggest energy consumer, and other industrial countries.

"We believe this week will mark the start of a new quota reduction cycle by OPEC and it will continue through 2009," Deutsche Bank analyst Michael Lewis said in a note.

"However, we believe production cuts will not rescue the oil price," he said. "We target WTI (U.S.) crude oil prices hitting $50 a barrel next year."

Analysts polled by Reuters had expected OPEC to reduce output by between 1 million and 1.5 million barrels per day.

The International Energy Agency, which advises industrialized consumer countries, was critical of OPEC's cut.

"It's not a helpful decision because markets are quite nervous," Eduardo Lopez, senior analyst at the IEA's oil market division said.

Investors across financial markets are increasingly pessimistic about the world economy, illustrated by sharp falls in European and Asian stocks on Friday, led by around a 10 percent drop in Japan's Nikkei average (.N225).

Britain's economy, for example, contracted by 0.5 percent in the third quarter of 2008, evidence that recession is on the way.

Even gold, a traditional safe haven, was down nearly 5 percent, pressured by a surge in the U.S. dollar as investors moved into cash.

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[w¡n9Nµ7 §£@¥€r 123]

Gas prices are in the mid 2's out here. Life is good again.

If this keeps up I may buy an SUV next summer

[Ban Hammer 14,569]

Gas prices are in the mid 2's out here. Life is good again.

If this keeps up I may buy an SUV next summer

$2.31 a gallon here and still dropping.

[w¡n9Nµ7 §£@¥€r 123]

So what do you think about the new Hyundai Genesis?

[Ban Hammer 14,569]

So what do you think about the new Hyundai Genesis?

never heard of it.

[Heracles 417]

So what do you think about the new Hyundai Genesis?

That car looks nice and seems to perform well. I wish Hyundai pulled a Lexus, Acura and used a different brand name for it though.

So what do you think about the new Hyundai Genesis?

never heard of it.

It's the car you will see pass you in your V8 pickup.

[Ban Hammer 14,569]

So what do you think about the new Hyundai Genesis?

never heard of it.

It's the car you will see pass you in your V8 pickup.

most unlikely, as it spends most of it's time in the garage and only comes out when it's snowed

eta: wiki says: The Hyundai Genesis (Korean: 현대 제네시스) is a rear-wheel drive, full-size[1] car introduced initially as a concept car in the 2007 New York International Auto Show.

rear wheel drive - i'll be passing it during the winter

Edited October 24, 2008 by charles!

[Heracles 417]

most unlikely, as it spends most of it's time in the garage and only comes out when it's snowed

I thought you had a nice F250. Or something 'compact' like an Excursion.

Edited October 24, 2008 by Aficionado

[Ban Hammer 14,569]

most unlikely, as it spends most of it's time in the garage and only comes out when it's snowed

I thought you had a nice F250. Or something 'compact' like an Excursion.

naw, a 1500 chevy.

[mawilson 2,133]

So what do you think about the new Hyundai Genesis?

I like it.

[Amby 490]

So what do you think about the new Hyundai Genesis?

I like it.

I just looked it up since you're all wetting your tips over it and well...me likeeeeey too

[SMOKE 1,426]

So what do you think about the new Hyundai Genesis?

I like it.

I just looked it up since you're all wetting your tips over it and well...me likeeeeey too

me too

[Niels Bohr 72]

Gas prices are in the mid 2's out here. Life is good again.

If this keeps up I may buy an SUV next summer

You hogger.

[spookyturtle 9,466]

In reply to the initial post, I say screw OPEC. The whole world is going down the toilet and we are supposed to feel bad about their falling revenue? Welcome to the real world. Perhaps they won't be paving their streets with gold for a while. I truly hope that the US has finally learned it's lesson and works hard to reduce our dependence on foreign oil and devotes the necessary resources to alternative energy sources.

[*Robert* 2]

I already went out and bought a new gas hog!!!

Just gotta love a Hemi 5.7

Just bought gas for $2.66 yesterday, down from $4.09!!!