Oil futures extend plunge to lowest since 2009 on OPEC inaction

Investing.com - West Texas Intermediate and Brent oil prices extended sharp losses from the previous session on Monday to hit the lowest level since 2009 as investors piled on to their short positions in anticipation of lower prices in response to OPEC's decision to maintain production last week.

On the New York Mercantile Exchange, crude oil for delivery in January fell by as much as 3.6% to touch a daily low of $63.75 a barrel, a level not seen since July 2009, before trading at $63.97 during European morning hours, down $2.18, or 3.3%.

On Friday, New-York traded oil futures sank $7.54, or 10.23%, to end at $66.15 a barrel. Nymex oil futures lost $10.36, or 13.54%, last week. Prices ended November down 18.07%, the worst monthly decline since October 2008.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for January tumbled $2.17, or 3.09%, to trade at $67.99 a barrel. Prices hit $67.57 earlier, the weakest level since October 2009.

London-traded Brent prices lost $2.43, or 3.35%, on Friday to settle at $70.15 a barrel. The January Brent contract sank $10.21, or 12.7%, last week, the biggest weekly loss since May 2011. Prices slumped 18.48% in November, the worst monthly performance in since October 2008.

The Organization of Petroleum Exporting Countries said on November 27 that it would keep its official production target unchanged at 30 million barrels a day, disappointing hopes the oil cartel would lower output to support the market.

The 12-member group is responsible for approximately 40% of global supply. Their next meeting is scheduled for June 5, 2015.

Concerns over weakening global demand combined with indications that OPEC producers will not cut output have weighed on prices in recent months.

London-traded Brent prices have fallen nearly 42% since June, when it climbed near $116, while WTI futures are down almost 41% from a recent peak of $107.50 in June.

Meanwhile, market players digested a pair of reports on Chinese November factory activity, which provided more evidence of a slowdown in the world's second largest economy.

Official data released Monday showed that China's manufacturing purchasing managers' index slipped to an eight-month low of 50.3 this month, below expectations for a reading of 50.5 and down from 50.8 in October.

The China HSBC final manufacturing PMI hit a six-month low of 50.0 in November, unchanged from a preliminary estimate and down from 50.4 the previous month.

Later in the day, the U.S. Institute of Supply Management was to release data on manufacturing activity.

The U.S. and China are the world’s two largest oil consuming nations and manufacturing numbers are used as indicators for fuel demand growth.