Crude Prices Tumble Despite OPEC Output Cut Warning

Crude prices tumbled Monday concerns over dim economic outlook weighed markets despite OPEC output cut warning.

Oil prices rose Monday morning on reports that the Organization of Petroleum Exporting Countries (OPEC) had cut production by more than 4 million barrels per day.

OPEC's former president, Algerian Energy and Mines Minister Chakib Khelil, said the cartel is likely to cut further when it meets on March 15.

However, traders shrugged off the OPEC reports as the Standard &Poor's 500 index dropped to its lowest level in nearly 12 years Monday. The benchmark index fell as low as 745.82, dropping below its Nov. 20 close of 752.44.

Light, sweet crude for April delivery fell 4 percent, or 1.59 U.S. dollars, to settle at 38.44 dollars a barrel on the New York Mercantile Exchange.