Oil slides back through $40 a barrel


Updated:


The price of oil slumped back below $40 again today for the first time in a fortnight amid expectations that US stockpiles are building up due to weak demand from recession-hit industrialists.

New York crude oil's price fell 43 cents to $39.65 as traders anticipated tomorrow's weekly report on US crude oil inventories.


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Cut price: Opec producers didn't cut the amount of oil produced to the agreed 24.8m barrels, instread pumping over 26m


Meanwhile, it emerged that Opec producers only managed to cut output by about two-thirds of the amount pledged in January.

They had promised each other to cut supply from 27 million to 24.8 million barrels in a bid to stave off the price collapse.

But the cartel still pumped 26.2 million barrels.

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