Commodities : Monday, Feb. 3, 1986 : Oil Futures Decline Again

Oil futures prices plunged deeper Monday and sent shock waves through many of the nation’s commodity exchanges.

Crude oil dropped below $18 a barrel on the New York Mercantile Exchange and limit declines allowable for daily trading were recorded in crude oil, heating oil and gasoline.

“Traders are concerned about how (oil) producers are going to find an arrangement to limit production,” said John Hill, an analyst in New York with Merrill Lynch Commodities.

In the background is a meeting in Vienna of ministers from five member nations of the Organization of Petroleum Exporting Countries, where they are trying to come up with recommendations for defending what it considers its fair share of the oil market. “The market continues to be demoralized,” said Andrew Lebow, an analyst in New York with Shearson Lehman Bros.

The bearish news continues to flow in. Saudi Arabian officials were reported to have said they will not retreat from efforts to retain their share of the market and Nigeria was reported intending to increase production.