Article: Layoffs pound oil prices

Oil continued its downward march Thursday as mass layoffs pushed the U.S. economy deeper into recession, signaling a drastic pullback on energy spending.Light, sweet crude for February delivery, fell $2.94 to settle at $41.67 barrel on the New York Mercantile Exchange. The January contract, which closes on Friday, fell 9 percent, or $3.84, to settle at $36.22 after dropping as low as $35.98, levels last seen in June 2004.There is no demand for oil right now, said analyst Peter Beutel of Cameron Hanover.Higher prices for the February contract suggest that oil brokers and traders believe OPEC's unprecedented 2.2 million-barrel daily production cut, announced Wednesday, will tighten supply. ...

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