Oil Slides 8% to $40 as Size of OPEC Cut Disappoints

From Bloomberg: OPEC Agrees to Cut Output by 4.2 Million Barrels

OPEC agreed to cut oil output by 4.2 million barrels a day from September production levels, Secretary-General said.

The Organization of Petroleum Exporting Countries will cut output from a daily level of 29.045 million barrels three months ago, indicating a new quota target of 24.845 million barrels a day.

From Calculated Risk: OPEC Cuts Output Target, Oil Prices Fall

Crude-oil futures tumbled 8% Wednesday, paying little heed to a widely expected production cut of 2.2 million barrels in current oil output by the OPEC oil cartel.

Crude for January delivery fell $3.54, or 8%, to end at $40.06 a barrel on the New York Mercantile Exchange.