Oil prices fell to new lows over the weekend, with Brent futures down another 2 percent this morning at $36.06 per barrel; the weakest figure since July 2004.
Crude has fallen 34.8 percent this year to date, and 76 percent since 2008, with analysts worried that the rout shows no sign of slowing. Markets have reacted badly to the news, with the Dow falling 367 points to 17,129 Friday; equalling its worst two-day slide since August.
The rout has been caused by demand continuing to outstrip supply, something that is likely to continue after OPEC’s announcement this month that it will not curb production. Russian production has continued to expand and is now at 10 million bpd, the highest since the collapse of the Soviet Union.
Similarly, OPEC leader Saudi Arabia has upped production from 10.226 to 10.276 million bpd between September and October. The U.S. oil rig count has risen by another 17 to 541, with a strong dollar following last week’s interest rate hike also having an adverse effect on prices.
WTI Crude is currently below the $35 mark, trading at $34.73 per barrel, with Brent also down at $36.88 per barrel.
21/12/2015
