Crude oil lost more than 9 percent to close below US$50 a barrel Monday after OPEC deferred decision on further production cut to its next meeting later this month.

Light, sweet crude for January delivery fell US$5.15 to settle at US$49.28 a barrel on the New York Mercantile Exchange, which is the lowest settlement price since May 23, 2005. Price fell to as low as US$49.05 a barrel during the session.

Oil prices rose last week on speculation that OPEC would trim output on the unofficial meeting in Cairo last Saturday. But OPEC decided to defer it until its next meeting on December 17. The cartel said it will use the time to observe the impact of its 1.5-million barrel reduction in October.

Oil prices have tumbled 65 percent from the record high of US$147.27 a barrel reached in mid-July. Many OPEC members including Iran, Venezuela and Algeria have been calling for further production cut to stable the price.

Meanwhile, recession concern remains despite the price drop. The US economy entered a recession in December 2007, according to a statement by the US National Bureau of Economic Research, the panel which observe US business cycles and decide when is the start of a recession.

In London, Brent crude for January delivery fell US$5.24 to US$48.25 a barrel on the ICE Futures Exchange.

(Xinhua News Agency December 2, 2008)