Oil prices dive below dollars 17 a barrel
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.CRUDE oil prices tumbled below the psychologically important dollars 17-a-barrel mark yesterday due to continued overproduction by Opec and high stock levels, writes Neil Thapar.
Physical Brent available for immediate delivery slipped 55 cents to dollars 16.70 while the March futures contract closed 35 cents down at dollars 17.10 after a low of dollars 16.90.
The fall comes despite widespread disruption in North Sea production due to bad weather. Prices have now fallen more than dollars 4 since October.
Dealers said the immediate outlook remained bearish because of high output by members of Opec, who are estimated to be supplying about 500,000 barrels a day above demand. The cartel produced about 25.4 million barrels a day last month.
Sentiment has also been hit by fears that the new Clinton administration might lead to the resumption of Iraqi oil exports. It is also felt that demand will remain weak due to an economic slowdown in Europe this year.
Jeremy Hudson, oil analyst at Lehman Brothers International, believes that oil prices are likely to fall further in the run-up to next month's Opec meeting.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments