Crude drops 10 percent in New York

Crude oil was 10 percent lower on the session in New York Monday as the Dow Jones Industrial Average dropped under the 7,000 level for the first time since 1997 amid a significant retreat in global equities markets.

There were mixed messages as to whether or not the Organization of Petroleum Exporting Countries will further cut production when it meets later in the month as Algeria’s oil minister said today that the cartel is likely to make more cuts, but Iran’s oil minister said Sunday that cuts will probably not be made.

April contracts for West Texas Intermediate crude dropped $4.39 to $40.37 per barrel on the New York Mercantile Exchange, while Brent crude for April delivery was down $4.08 to $42.27 per barrel on the ICE Futures Europe exchange in London.

Nymex April gasoline futures were down 8 cents to $1.29 per gallon while April heating oil was 11 cents lower to $1.16 per gallon and April natural gas dropped 5 cents to $4.15 per million British thermal units.