NEW YORK, Dec 19: Oil prices fell further on Friday as fears of economic slowdown weighed heavier than proposed production cuts by the world’s major oil exporters.

Light US crude for January delivery fell to $33.44, its lowest since April 2004. It later rose to $35.45 a barrel.

The more active February contract, however, was up 73 cents to $42.40, with cuts in Opec production expected to take hold in that month. London Brent crude gained 79 cents to $44.15.

Major oil consumers and producers met in London on Friday to discuss measures for stopping big fluctuations. The Saudi oil minister came up with a price of $75 a barrel as a median between a high of $147, reached in July, and the current free fall that has brought prices crashing to a low of $33.

Pledges by the Opec to cut output by 2.2 million barrels per day (bpd) — the largest ever reduction by the producer group — failed to support January prices.

“From a credibility standpoint, Opec has no choice but

to bite the bullet for the next

few months,” said Jonathan Kornafel, Asia Director of Hudson Capital Energy.

“Until traders see a sustained drop-off in the rate of demand destruction, the market will have a hard time establishing a floor.”

Opening a meeting of energy ministers from Opec and the big consuming nations as well as energy companies, British Prime Minister Gordon Brown said: “We will need a new partnership between oil-producing and oil-consuming countries,” Mr Brown said.

“As with the global financial crisis, this global crisis in our energy markets cannot be solved by one nation or one continent alone.”—Reuters