NEW YORK (Reuters) - Oil plunged more than 9 percent to below $50 a barrel on Monday after OPEC deferred a decision on new supply cuts at a meeting over the weekend. The producer group delayed a decision on output until later this month as Saudi Arabia and other Gulf members called for greater compliance with existing cuts agreed to since September to help stem oil's fall from highs over $147 a barrel struck in July. U.S. crude traded down $4.95 at $49.48 a barrel by 2:26 p.m. EST, while London Brent crude fell $5.41 to $48.08 a barrel. "The major motivation for sellers is the discounting of the OPEC decision ... but motivation is not hard to find (as) the elements propelling prices from 2003 on have largely dissipated," said Mike Fitzpatrick, vice president at MF Global, in a report.
NEW YORK (Reuters) - Oil plunged more than 9 percent to below $50 a barrel on Monday after OPEC deferred a decision on new supply cuts at a meeting over the weekend.
The producer group delayed a decision on output until later this month as Saudi Arabia and other Gulf members called for greater compliance with existing cuts agreed to since September to help stem oil's fall from highs over $147 a barrel struck in July.
U.S. crude traded down $4.95 at $49.48 a barrel by 2:26 p.m. EST, while London Brent crude fell $5.41 to $48.08 a barrel.
"The major motivation for sellers is the discounting of the OPEC decision ... but motivation is not hard to find (as) the elements propelling prices from 2003 on have largely dissipated," said Mike Fitzpatrick, vice president at MF Global, in a report.
