Oil prices sank on Thursday as plunging stock markets outweighed news that OPEC will hold an emergency meet next month to discuss the impact of the chaos on world markets.
With prices far below record highs around USD 147 hit in July, analysts said the Organisation of Petroleum Exporting Countries (OPEC) could cut output to defend its precious oil revenues.
New York's main contract, light sweet crude for delivery in November, fell USD 1.71 to USD 87.24 a barrel. Brent North Sea crude for November sank USD 1.46 to USD 82.90 a barrel.
The price of crude oil fell sharply as nervous traders eyed fresh falls on global equity markets, which sparked renewed concern about slowing economic growth and weaker energy demand, analysts said.
But traders remained concerned that OPEC could slash output in November in an attempt to prevent the market sinking any lower.
"Market participants are still very much concerned that (oil) demand will continue to dwindle as global economies continue to slow sharply," said Sucden analyst Nimit Khamar in London.
"However, increased expectations that OPEC may ... cut output is underpinning the market."
The OPEC cartel on Thursday said that it would convene an emergency meeting in Vienna on 18th November to discuss the effects of the global financial crisis on crude prices
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