Crude oil retreats on gloomy economic data

Special Report:Global Financial Crisis　

NEW YORK, Dec. 23 (Chinese media) -- Crude oil closed below 39 U.S. dollars a barrel on Tuesday as a series of disappointing economic reports added to investors' concern about a deepening recession.

Light, sweet crude for February delivery fell 93 cents to settle at 38.98 dollars a barrel on the New York Mercantile Exchange. Price dropped to as low as 37.79 dollars a barrel during the trading.

The U.S. Commerce Department reported on Tuesday that the third-quarter gross domestic product declined at an annual rate of 0.5 percent, the same as the government estimate one month ago. But investors are concerned that the readings for current and future quarters will get worse, with some projecting as much as a 6-percent drop in the October to December quarter.

Meanwhile, another government report showed that U.S. November sales of new homes dropped by 2.9 percent to a seasonally adjusted annual sales pace of 407,000 units, which was the slowest sales pace since January 1991. The November new home prices fell 11.5 percent from the level one year ago.

With economic slowdown worsening, a record production cut of OPEC last week seems unable to catch up the deteriorating demand. OPEC President Chakib Khelil told the press on Tuesday that the organization may call an emergency meeting before March if the oil price keeps sliding.

In London, Brent crude for February delivery fell 1.31 dollars to 40.14 dollars a barrel on the ICE Futures Exchange.