oil dives to fresh 12year low under 28
Last Updated : GMT 06:54:06
Arab Today, arab today
Arab Today, arab today

Oil dives to fresh 12-year low under $28

Arab Today, arab today

Arab Today, arab today Oil dives to fresh 12-year low under $28

Oil plunged to fresh 12-year lows under $28
London - AFP

Oil plunged to fresh 12-year lows under $28 on Wednesday, slammed by gloomy economic forecasts, China's slowdown and abundant crude supplies.

In morning deals, US benchmark West Texas Intermediate (WTI) for February delivery tanked to $27.32 per barrel, a level last seen on September 24, 2003.

The contract later stood at $27.80, down 66 cents from Tuesday's closing level.

The global oil market has collapsed further since the International Energy Agency warned Tuesday that the oil market could "drown in oversupply".

Prices have crashed about 75 percent since mid-2014, hit by a perfect storm of a stubborn supply glut, the slowing global economy and the rebounding US dollar.

"A stronger dollar continues to present significant headwinds and supply increases show little sign of letting up any time soon," Sucden analyst Kash Kamal told AFP.

"This is very much a supply issue, as global demand has on the whole been quite healthy -- but it is likely we will see additional price declines and tighter margins before producers are prompted to cut output."

The strong dollar meanwhile makes dollar-priced crude more expensive for buyers using weaker currencies. In turn, that dents demand and prices.

Approaching midday in London, Brent North Sea crude for delivery in March slid 67 cents to $28.09 compared with the close on Tuesday.

Brent had tumbled on Tuesday to $27.67, a low last witnessed on November 25, 2003.

Crude futures are also in freefall with the supply glut set to worsen, as Iran pumps out extra barrels after the lifting of Western sanctions on Tehran.

The IEA predicted Tuesday that prices would fall further this year as supply vastly exceeds demand, with major oil exporter Iran's return to the market offsetting any production cuts from other countries.

- Supply glut -

The market has been awash with supplies owing to high production levels by the United States and the OPEC cartel, which last year refused to slash output as it looks to maintain market share.

Iran on Monday ordered a boost to crude production a day after the West lifted sanctions on the country in response to Tehran's compliance with a deal on curbing its nuclear programme.

Iran's National Iranian Oil Company said it had ordered an increase in output of 500,000 barrels per day (bpd). The country currently produces 2.8 million bpd and exports just over a million.

"The market is already awash with the stuff and now Iran is adding to the mix, so we may witness even lower oil prices and for longer," predicted analyst Fawad Razaqzada at traders Gain Capital.

Kamal added that the 12-nation OPEC cartel has continued to pump above its official output target, adding to the supply glut.

"Prices are forecast to remain under pressure and will likely fall further as crude output from OPEC remained well above its 30 million bpd production quota in December, estimated at 32.89 million bpd," he said.

"The cartel lacks production discipline and we expect this production glut to persist at the start of 2016.

"With Iranian crude set to hit the market imminently, to the tune of 500,000 bpd, we could see the (oil) price come under additional pressure in the short term."

WTI is currently down 20 percent from its value from the start of 2016 after dropping by 30 percent last year.

Brent is down 22 percent from the start of the year, in addition to the almost 35-percent plunge it suffered in 2015.

 

arabstoday
arabstoday

GMT 14:54 2017 Sunday ,19 November

Bahrain Bourse daily trading performance

GMT 03:16 2017 Saturday ,18 November

Asian markets head for positive end to volatile week

GMT 11:57 2017 Friday ,17 November

US stocks boosted by solid Wal-Mart, Cisco earnings

GMT 06:51 2017 Friday ,17 November

Bahrain Bourse daily trading performance

GMT 03:57 2017 Thursday ,16 November

Stock markets retreat as oil slides

GMT 15:05 2017 Wednesday ,15 November

Bahrain Bourse daily trading performance

GMT 02:47 2017 Wednesday ,15 November

Asian markets down as fears grow for US tax reform

GMT 19:56 2017 Tuesday ,14 November

Bahrain Bourse daily trading performance
Arab Today, arab today
Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

oil dives to fresh 12year low under 28 oil dives to fresh 12year low under 28

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

oil dives to fresh 12year low under 28 oil dives to fresh 12year low under 28

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Japanese regulators raid Airbnb

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Saudi, Bahrain target Iran

GMT 00:48 2017 Monday ,20 November

Saudi, Bahrain target Iran
Arab Today, arab today Europe turns on Facebook, Google

GMT 02:26 2017 Monday ,20 November

Europe turns on Facebook, Google
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Hanan Metawe denies apology for “Major Treason”

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 02:28 2017 Saturday ,18 November

Anti-drug operation nets 4 tonnes

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday