NEW YORK: Oil prices dropped 10 percent yesterday and touched 13-month lows in a flight from risk amid concerns of a worldwide recession and further signs of slumping energy demand.
The International Energy Agency (IEA) slashed its estimate of worldwide 2008 oil demand growth to its lowest rate since 1993, and lowered its 2009 growth forecast by 190,000 barrels per day. US crude plunged $9 to $77.59 a barrel by 2:01 p.m. EDT (1801 GMT) after hitting $77.38, the lowest level since Sept. 11, 2007. London Brent crude traded down $9.18 to $73.48.
The price fall has caused some members of the Organization of Petroleum Exporting Countries (OPEC) to call for a cut in production levels, and the organization has agreed to hold an emergency meeting in Vienna on Nov. 18 to discuss the impact of the global financial crisis on the oil market.
