NEW YORK, Dec 18: US crude prices dropped more than nine per cent to $36 a barrel on Thursday as slumping demand and swelling US inventories offset Opec’s record supply cut agreement.

The Organisation of the Petroleum Exporting Countries on Wednesday agreed to cut output by 2.2 million barrels per day from January to counter oil’s collapse from record highs above $147 a barrel in July.

“Following Opec’s announcement to cut so aggressively, market participants are (assessing) the degree of this move as being indicative of just how weak demand is globally for crude oil,” said Chris Jarvis, senior analyst at Caprock Risk Management.

The January US crude oil contract, which expires on Friday, settled down $3.84 at $36.22 a barrel, after earlier hitting $35.98, the lowest price since June 2004. —Reuters