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Slower demand and cheaper oil may prompt OPEC to trim supplies
Slower demand, an economic downturn and cheaper oil may prompt OPEC to trim supplies, but few expect the cartel to change its output targets when it meets next week. Oil prices fell to a fresh five-month low on Friday on flagging demand in the United States and other consumer nations, extending crude's losses to 8 percent this week Oil prices sank to a five-month low Friday as a jump in the U.S. unemployment rate signaled to traders that Americans might keep paring back their energy use to save money. Investors are waiting to see if OPEC decides to restrict oil output at its meeting next week in Vienna. Investors are waiting to see if OPEC decides to restrict oil output at its meeting next week in Vienna. The Labor Department said the economy lost jobs in August for the eighth consecutive month -- and at a faster-than-expected pace. The unemployment rate spiked to 6.1 percent from 5.7 percent in July, above the 5.8 percent rate that analysts forecast. "There's been a terrific amount of growing concern about the outlook for demand globally," said John Kilduff, senior vice president of risk management at MF Global LLC. "Today's employment report emboldened that concern." Light, sweet crude for October delivery fell $1.66 to settle at $106.23 a barrel on the New York Mercantile Exchange -- its lowest settlement since early April. During the session, it fell as low as $105.13. Since surging to a record $147.27 a barrel on July 11, crude has tumbled by over $40, or more than 27 percent. What could possibly stanch the drop is a cutback in production. Investors are waiting to see if OPEC decides to restrict oil output at its meeting next week in Vienna in response to the two-month plunge in prices.