Oil Prices Jump on Rumor of Saudi Cuts

That has been met with some skepticism by analysts, and production cuts have failed to halt crude's slide to date.

"I view OPEC as almost powerless right now," Ritterbusch said.

Demand for energy has evaporated amid a recession that only appears to be spreading and by most indications, OPEC's ability to bolster prices has been greatly diminished.

China said Wednesday that exports in November fell 2.2% from a year ago, the first decline in seven years as consumer demand around the world has plunged. That was down sharply from October's export growth of 19.1% and well below analysts' forecasts of a 13% to 15% rise. Imports fell by 17.9%, pushing China's trade surplus to a new high of $40.1 billion.

In the U.S., wholesalers cut back on their inventories in October by the largest amount since the period following the 2001 terrorist attacks while they watched their sales plunge by a record amount. Analysts predict more grim news in the months ahead as the current recession deepens.

The Commerce Department reported Wednesday that wholesalers, the companies in the supply chain between manufacturers and retailers, reduced their inventories by 1.1% in October.

The World Bank on Wednesday cut its real gross domestic product growth outlook in East Asia to 5.3% in 2009 from an expected 7.0% this year.

Vikram Nehru, the World Bank's chief economist for East Asia and the Pacific, warned that with conditions changing so quickly, the outlook for the region could easily worsen.