Oil price falls despite Opec cut

After an initial kneejerk move higher, crude futures in London and New York dived almost $1. Late afternoon in London, front-month January crude trading on the New York Mercantile Exchange (Nymex) was down 23 cents at $42.30 a barrel.

“Traders probably feel this isn’t going to make much difference to supply,” said Tony Machacek, energy broker at Bache Financial.

Nymex crude, commonly referred to as WTI, is down around 25% from its high of $57/bbl reached in August.

However, the price is sti