Oil prices sink near seven-year lows on OPEC decision

Sentiment was also soured by weak demand growth, the strong dollar and a broader collapse in other commodity markets.

US West Texas Intermediate crude futures were at $37.86 a barrel, up 35c from their last settlement.

The 13-member OPEC said in a meeting on Friday that it will not cut production, now accounting for around 40 percent of the global crude output.

Internationally traded Brent futures were down 47 cents at United States dollars 40.26 a barrel by 9:46 a.m. EDT (1446 GMT), having fallen below USD 40 per barrel earlier in the session for the first time since March, 2009.

OPEC countries are now producing an estimated 32 million barrels per day, above the group s prior 30 million barrel target.

Prices fell to the lowest since February 20, 2009, dropping for a third day after the Organization of Petroleum Exporting Countries made a decision to keep pumping oil at current rates during a December 4 meeting.

Unemploymentdata.com, citing energy industry consultant Graves & Co., says that oil and gas companies have fired a quarter of a million employees since prices slumped … and that’s just the beginning.

Countries like Ghana who now rely heavily on oil revenue will be the hardest hit if the prices continue to tumble. The outlook of slightly higher prices towards the end of 2016 is based on the expectation that some producers, especially U.S. shale drillers, will cut output due to low prices and as most established producers like Russian Federation and OPEC are close to maximum production capacity. Most of the market “doesn’t have any ceiling” on production, Iraqi Oil Minister Adel Abdul Mahdi told reporters after the meeting in Vienna.

The tumble follows Monday’s plunge of more than 6 percent, although a surprise hike in Chinese commodity imports, announced Tuesday, raised hopes that prices could steady somewhat. “This will support prices in the medium term”, Shah said.

Signs of disarray in the OPEC oil cartel prompted fears of a global glut of oil, wiping $2 off the price of a barrel of crude and leading to speculation that energy costs could continue tumbling over the coming weeks.

China’s General Administration of Customs on Tuesday revealed the world’s second-largest economy imported 27.3m tonnes of crude oil in November, up 3.8% from a five-month low in October.