LONDON, Oct 9,: Oil prices sank on Thursday as plunging stock markets outweighed news that Opec will hold an emergency meet next month to discuss the impact of the chaos on world markets.With prices far below record highs around $147 hit in July, analysts said the Organization of Petroleum Exporting Countries could cut output to defend its precious oil revenues.

New York’s main contract, light sweet crude for delivery in November, fell $1.71 to $87.24 a barrel.

Brent North Sea crude for November sank $1.46 to $82.90 a barrel.

The price of crude oil fell sharply as nervous traders eyed fresh falls on global equity markets, which sparked renewed concern about slowing economic growth and weaker energy demand, analysts said.

But traders remained concerned that Opec could slash output in November in an attempt to prevent the market sinking any lower.

“Market participants are still very much concerned that oil demand will continue to dwindle as global economies continue to slow sharply,” said Sucden analyst Nimit Khamar in London.

“However, increased expectations that Opec may cut output is underpinning the market.” The Opec cartel said on Thursday that it would convene an emergency meeting in Vienna on November 18 to discuss the effects of the global financial crisis on crude prices.

At the same time, however, Wall Street and European stock markets kicked lower on Thursday as investors fretted over frozen credit markets and troubled banks worldwide.

“The Organisation is concerned about the deteriorating economic conditions,” said a statement from Opec, whose 12 member nations pump around 40 per cent of world oil supplies.

“The subprime mortgage problems that have been observed for a long time have created a shock wave in financial institutions resulting in huge losses, and escalating credit squeeze, which has turned into a deep financial crisis.” Chronic turmoil on world financial markets had spread to many regions across the globe and “created even more uncertainties for the world economy,” it added.

“Amid growing unease over this situation, the Organisation has decided to hold an extraordinary meeting ... on Tuesday, November 18, 2008 in Vienna to discuss the global financial crisis, the world economic situation and the impacts on the oil market.

“The organisation reiterates its determination to ensure that oil market fundamentals are kept in balance and market stability is maintained.” Oil prices briefly fell to one-year lows on Wednesday as slumping stock markets generated demand concerns in a cooling global economy.

The market had also ended lower as news of an unexpectedly sharp jump in US crude reserves signalled weaker demand in the United States, the world’s largest energy consuming nation.—AFP