Crude Oil Prices fell to their lowest level in past four years due to concerns about falling demand with economic slowdown and rising inventories. Further correction in crude prices is expected in coming few weeks. January contract on Nymex tumbled by over 26% against the previous week and closed at $ 33.87 per barrel. On MCX the same month, contract closed down 15% at Rs 2051 per barrel. Prices have fallen 77% from record $147 a barrel reached on July 11. In the domestic market, a similar fall in prices, as the global markets, was arrested due to currency movement. The rupee has risen 2.8% this week against the dollar to 47.25 level.
Earlier in the week, Opec announced to cut down the production by 2.2 million barrels per day with effect from January but this was offset by the piling inventories and low demand. Having failed to arrest the fall in prices, Opec members may meet again later in January to discuss further reductions.