Price of crude oil tumbles to its weakest level

Price of crude oil tumbles to its weakest level

Price of crude oil tumbles to its weakest level

Written by Staff Writer

24 Aug, 2015 | 11:17 pm

The price of crude oil has taken a nose dive in the world market. Reuters news agency says that the crude oil tumbled to its weakest levels in 6-1/2 years. Crude oil took a downward trend with a market price pegged between 40 US dollars and 45 US dollars a barrel.

The price of crude oil in the global market was between 60 – 65 US dollars a barrel two months ago. Reuters newsagency reported that the price of a barrel of Brent Crude dropped to to 44. 37 US Dollars in the market today.

U.S. light crude was down $1.93, or 4.8 percent, at $38.52 a barrel, after falling as low as $37.75, down 6.7 percent on the previous close and its weakest since February 2009. U.S. crude is now more than 17 percent below its opening price at the start of the month and Brent is down more than 16 percent.

Analysts say markets are worried about a China-led global economic slowdown that would drastically hit oil consumption at a time of plentiful supply.

Algeria said earlier this month that the Organisation of Petroleum Exporting Countries could hold an emergency meeting to discuss the drop in oil prices but other OPEC delegates said no meeting was planned.

OPEC is not due to meet until December 4.

While OPEC rules say a simple majority of the 12 OPEC members is needed to call an emergency meeting before then, some OPEC delegates say a meeting is unlikely unless Saudi Arabia is in favor.

Saudi Arabia, the world’s top oil exporter, and other Gulf states pushed OPEC’s strategy shift last year to defend market share rather than cut output to support prices.

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