Crude prices fell below US$40 a barrel on Monday on a weak energy demand outlook.

Earlier in the day, oil prices were boosted by comments from the Organization of Petroleum Exporting Countries (OPEC), as the cartel warned to cut oil output further to counter the slumping demand.

OPEC Secretary-general Abdalla el-Badri has also announced that the cartel would postpone 35 of its 150 new oil and gas projects.

However, oil prices fell later in the day as poor company earnings stirred concerns on energy demand.

Light, sweet crude for March delivery was down 61 cents to settle at US$39.56 a barrel. London Brent was down 19 cents to settle at US$46.02 a barrel.

(Xinhua News Agency February 10, 2009)