NEW YORK -- Crude oil tumbled Tuesday as the U.S. Federal Reserve interest rate cut revived investors' concern about slumping demand during the economic recession.
Light, sweet crude for January delivery fell 91 cents to settle at 43.60 U.S. dollars a barrel on the New York Mercantile Exchange(NYMEX).
The Fed decided Tuesday to cut its target for overnight interest rates from 1 percent to zero to 0.25 percent. The Fed said in its statement that the economy remains weak and it will continue to bring unconventional measures to boost economic activities.
The dramatic interest rate cut sent the message to investors that the recession is still deepening and energy demand is unlikely to recover anytime soon. NYMEX crude futures slid from day's high to as low as 42.56 dollars a barrel.
The possibility of a severe production cut by OPEC is still weighing on the market. The oil cartel will meet in Algeria Wednesday to discuss how much output it should slash to prevent oil prices plunging further.
In London, Brent crude for February delivery fell 63 cents to 46.51 dollars a barrel on the ICE Futures Exchange.
Light, sweet crude for January delivery fell 91 cents to settle at 43.60 U.S. dollars a barrel on the New York Mercantile Exchange(NYMEX).
The Fed decided Tuesday to cut its target for overnight interest rates from 1 percent to zero to 0.25 percent. The Fed said in its statement that the economy remains weak and it will continue to bring unconventional measures to boost economic activities.
The dramatic interest rate cut sent the message to investors that the recession is still deepening and energy demand is unlikely to recover anytime soon. NYMEX crude futures slid from day's high to as low as 42.56 dollars a barrel.
The possibility of a severe production cut by OPEC is still weighing on the market. The oil cartel will meet in Algeria Wednesday to discuss how much output it should slash to prevent oil prices plunging further.
In London, Brent crude for February delivery fell 63 cents to 46.51 dollars a barrel on the ICE Futures Exchange.
