Oil Prices on Wednesday Fell Below $40 USD for the first time since July 2004 , despite an announcement from OPEC of a record production cut of 2.2 million barrels a day.
Light Sweet Crude for January Delivery declined 8 % or $3.54, to settle at $40.06 on the New York Mercantile Exchange. Benchmark crude prices fell as low as $39.88
There is so much oil in inventory and Crude Prices have Fallen so Low that Producers have Leased Supertankers to Store the Oil at Sea – hoping that oil will rebound.
Investors in this harsh economic climate are holding onto their wallets like never before – Betting there’s not enough global demand to support higher crude prices.
As the economic outlook deteriorates by the day – futures markets for commodities have priced in the Demand Destruction taking place.
In other Nymex trading – gasoline futures fell 3.45 cents to settle at $1.00 a gallon. Heating oil fell 1.77 cents to $1.44 a gallon while natural gas for January delivery fell 15.2 cents to settle at $5.62 per 1,000 cubic feet.
Gas prices – because gas must be refined from crude , trails the movement in oil prices. Retail gas prices are around $1.66 a gallon.
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