BE PREPARED PNG - OIL PRICES PLUNGED UNDER USD50 A BARREL AND WILL CONTINUE TO COLLAPSE FURTHER! I was not wrong to predict the continuous plunged in oil prices. With the Global prices collapsed under USD50 a barrel, good luck to Oil Search and the Government. Hold on tight as the storm will be very distratous in coming days! As oil prices plunge across the globe, petrol prices across the US drop even further. LONDON (AFP) - Global oil prices on Monday collapsed under US$50 (S$66.77) for the first time in more than five years on the strong dollar, plunging equities, demand worries and plentiful crude supplies. US benchmark West Texas Intermediate for February delivery tumbled to US$49.95 per barrel, touching the lowest level since May 1, 2009. Londons Brent North Sea crude for February dropped to a similar nadir at US$52.66 a barrel. New York crude later stood at US$50.27, down US$2.42 from Fridays closing level. Brent was at US$53.09 a barrel, down a hefty US3.33. The dollar keeps strengthening and weighing on oil prices. A long rally in the greenback, which gained 11 per cent last year against a basket of major rival currencies, has weighed on the dollar-priced oil market by making crude more expensive for buyers using weaker currencies. Oil has dropped about 50 per cent since June on worries about weak demand and a decision by the Organization of the Petroleum Exporting countries not to cut output in response to lower prices. People are thinking about promises from OPEC, mostly Saudi Arabia, that theyll continue to produce at very high levels. On the demand side of the equation, basically theres a lack of demand growth... as Europe is potentially in crisis. Investors will pore over both releases for fresh clues on when the US central bank will raise interest rates. Investment analyst said crude prices are expected to continue to be on (a) bearish trend. After what seemed to be profit-taking at the end of the year, oil bears have returned from their holidays and are back for more, he said. As we continue to take a bullish stand for the US economy, we expect the dollar to strengthen, thus putting further downward pressure on oil prices.
Posted on: Tue, 06 Jan 2015 00:55:38 +0000
Trending Topics
Recently Viewed Topics
© 2015