USA government bond prices edged up.
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Middle Eastern countries are also reducing or delaying orders as oil prices remain low.
RESTAURANT ROUT: Chipotle Mexican Grill fell $10.58, or 2 percent, to $541.17 after people were sickened after eating at one of the company’s restaurants in Boston.
The Dow Jones industrial average was down about 140 points, or 0.8%, after being down as much 245 points earlier.
The Nasdaq Composite was off 0.78 per cent, at 5,101.98. AP’s earlier story is below.
If OPEC cuts production and prices go up, it increases the viability of United States shale oil producers who will boost production, so cutting production will not work.
EUROPE DOWN: Germany’s DAX fell 2 percent while the CAC-40 in France was 1.6 percent lower. But Vallianz Holdings eked out a 0.1 cent or 2.08 per cent gain to 4.9 cents. The S&P 500 fell 14.62 points, or 0.7 percent, to 2,077.07.
“The decision by OPEC members to keep oil production output at record high levels has seen oil prices plummet again”, said Sanjiv Shah, chief investment officer of Sun Global Investments.
“Oil is going to be staying at some ridiculously low price for a very long period of time”, he added. US crude was trading at $37.72 a barrel, up just 7 cents from its last settlement and close to the 2015 and 7-year lows of the previous session. The contract lost $1.32 on Monday to close at $37.65.
Crude oil prices dipped further on Monday after OPEC failed to agree on output targets to reduce a bulging glut that has cut prices by more than 60 percent since June 2014.
“Obviously, the full impact of the OPEC decision to abandon their quotas and production ceiling is registering in a big way with the market today, after a delayed reaction on Friday”.
ANGLO AMERICAN: Shares in the mining firm Anglo American plunged by more than 8 percent after it said it would shed around 85,000 employees – or 63 percent of its workforce – amid a radical restructuring program meant to cope with the tumble in commodities prices.
China’s General Administration of Customs on Tuesday revealed the world’s second-largest economy imported 27.3m tonnes of crude oil in November, up 3.8% from a five-month low in October. Profits are down at the majors such as Exxon Mobil Corp. and Chevron Corp., but independents are suffering more. Import volumes of some goods such as crude oil, fresh fruit and cooking oil rose.
Hong Kong’s Hang Seng index was down 1.36% at 21,900.59, while the Shanghai Composite index was down 0.92% at 3,504.58.
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In Australia, Sydney’s S&P/ASX 200 index was down 0.56% at 5,126.70 weighed down by energy stocks. Stock indexes in India, Taiwan, Singapore, Jakarta and New Zealand also declined.
