Under $50 a barrel of oil

Posted by admin on 20 November, 2008 under Business news | Be the First to Comment

The price of Nymex crude has fallen to below $50 per barrel today finishing at $49.62.

Opec is considering cutting production by another 1.5 million barrels a day in order to prop up the price. But with the stocks of oil in the US piling up and increasing by more than expected the dollar price of oil is not looking to go up for some time.

With world economies shrinking and many reporting to be in recession the demand for fuel is reducing and therefore putting further downward pressure on the price of oil. Also, with China facing possible unrest, as unemployment increases due to weak demand for their products due to the world slowdown, where no so long ago China was one of the driving forces behind the oil price rise.