wrapper

Crude oil prices down to fresh 12-year low

Tuesday, Jan 12 2016
The price of oil plunged overnight to a fresh 12-year low. US West Texas crude fell $1.50 to $US31.37 a barrel - its lowest level since December 2003. The global benchmark Brent price slumped 6.6 per cent to $US31.31 a barrel. The falls extended this year's 15 per cent slide, in little more than a week of trade. Traders are betting the world's second largest consumer of oil China will demand much less of the commodity in 2016.
 "What we've really seen is a bit of a capitulation whereby many people who are holding some hope - a beacon of hope for oil - have now basically taken their bets off the table and we've seen oil really hit," said Elio D'Amato, the chief executive of Lincoln Indicators. The price of oil is falling because of both demand and supply problems.
 
After a week of Chinese market mayhem and expectations that the country will continue to devalue its currency, traders are betting that China will significantly pull-back on its oil consumption. In addition, while the OPEC [Organisation of Petroleum Exporting Countries] cartel would normally step in and cut supply to force the price up, the advent of competing shale energy companies has prompted the organisation to keep prices low in an attempt to kill-off those higher cost producers.
More in this category: « Aussie lower in a quiet overnight trade UK Industrial Production decreased by 0.7% »

Latest from Editor

About Us

Forex Web News is part of Rolling Capital Network providing financial consulting.

Within the Forex Web News we provide our readers with expert and timely technical analyses, fundamental analyses and news; with one aim – for our readers to make best possible financial decisions.

Forex Web News desks and analysis department follow the international markets closely and create high quality proprietary content on a both daily and weekly basis.

.

All our analysts have several years of trading and analysis experience. The Forex Web News analysis team creates daily and weekly analyses and offer forecasts regarding where they believe the markets are heading. Our readers are provided with data displayed both in texts and on graphs, providing them the fullest understanding of what is happening in the market place.

We are constantly growing our news desks and our analysis departments as we strive to broaden the content we provide to visitors of the Forex Web News.

Disclaimer

Rolling-capital.com – The company, employees, subsidiaries and associates, are not liable nor shall they be held liable jointly or severally for any loss or damage as a result of reliance on the information provided on this website. The data contained in this website is not necessarily provided in real-time nor is it necessarily accurate. All prices herein are provided by market makers and not by exchanges. As such prices may not be accurate and they may differ from the actual market price. rolling-capital.com bears no responsibility for any trading losses you might incur as a result of using any data within the Forex Web News.