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International Oil Prices Plunge on Monday
Crude oil prices plunged Monday in the major world markets, with the futures falling to the lowest levels in nearly two years on the New York Mercantile Exchange, as dealers feared that the terrorist attacks to America on September 11 would trigger a recession.
In New York, crude oil for November delivery tumbled 3.96 dollars, or 15 percent, to 22.01 dollars a barrel, the lowest level since October 29, 1999. The fall was the biggest since January 17, 1991, when U.S.-led allied forces began to attack Iraqi troops in Kuwait during the Gulf War.
In London, Brent North Sea crude oil for November delivery dropped 3.74 dollars, or nearly 15 percent, to 21.70 dollars, the lowest level since April 2000.
"Attention has turned to lower demand," said Lawrence Eagles, an oil expert with the GNI brokerage.
According to the recent surveys, most economists believe that the terrorist attacks will send the world's largest economy into recession, which would result in a sharp decline in oil demand.
Meanwhile, the Organization of Petroleum Exporting Countries will probably leave production quotas unchanged when it meets Wednesday in Vienna. Analysts noted that the organization has little room to cut production after it had reduced output quotas three times this year.
International oil prices soared above 29 dollars a barrel in the initial aftermath of the attacks on September 11, amid concerns that petroleum supplies would be effected if there is a U. S. retaliation in the Middle East. But the prices now are down more than 20 percent as the markets have been falling since the beginning of last week.
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