Oil prices fell today after Saudi Arabia signalled that it would not back an emergency meeting of the OPEC cartel aimed at halting the recent plunge in oil prices.
New York's main oil futures contract, light sweet crude for delivery in February, tumbled $1.39 to $51.60 in pit trading. It earlier struck $51.25 - the lowest point since May 2005.
In London, the price of Brent North Sea crude for February delivery shed 80 cents to $52.32 in electronic trading.
Saudi Oil Minister Ali Al-Naimi said today there was no need to call an emergency meeting of the Organisation of Petroleum Exporting Countries to discuss a possible output cut aimed at stemming prices.
Oil ministers from several OPEC countries, including Saudi Arabia and Iran, are in New Delhi for a major gathering of energy producers this week.
Ali Al-Naimi's comments came amid persistent speculation over OPEC's response to heavy oil price losses.
Crude prices have slumped since the start of the year, losing as much as 15% in value, mainly due to a milder-than-expected winter across the US and Europe which cut demand for heating oil.
The sharp price fall so far this year has alarmed Opec, which has agreed two production cuts.
A first cut of 1.2 million barrels per day took effect from November 1st, and a second of 500,000 bpd is scheduled from February 1st.
Nigerian Energy Minister Edmund Daukoru said today Opec should wait to see the effects of its February output reduction before deciding on deeper cuts.
But Venezuelan Energy and Mines Minister Rafel Ramirez said oil prices had fallen 'too much' and that he would favour an emergency meeting before the producer group's next scheduled conference on March 15th.
