The brent crude oil price has crashed to its lowest level in 11 years as traders fretted about global overproduction.
The global oil benchmark fell 5% to $34.62 a barrel at one stage as signs of weakness in the Chinese and US economies soured expectations of stronger oil demand.
The refusal of leading oil producers such as Saudi Arabia to cut their output has also led to a supply glut that has helped depress prices.
Analysts believe the value of oil could still fall further especially after figures showing a strong surge in US gasoline stockpiles.
This downward trend comes despite fresh political tensions in the Middle East involving Saudi Arabia and Iran, which would usually push up prices.
(ed:..and this expert hasn’t even factored in the upcoming tidal wave of iranian oil (due to sanctions ending..)..
..that can only drive the price down further..
..and of course no producer will voluntarily cut production..they all know these are the final days of the oil-rush…and so will all cash-up while they can..
..the oil industry is currently in the same position as bridle-manufacturers were shortly after the introduction of the moor-vehicle..
..still spluttering along..but ‘the end’ inevitable..and looming up on the horizon..
..so there is no way any producers will volunteer to turn off/down this/their cash-tap..
..so the glut will continue to exert its’ market-force for the forseeable future..
..good news for all of us short-sighted consumers..bad news for the planet..)