Tuesday, December 8, 2015

Oil prices drop to near 7-year low after OPEC meeting

Nov 08, 2015 (LBO) – Crude oil prices fell six percent to a near seven-year low after OPEC showed no signs of addressing a supply glut following a meeting on Friday.

Brent crude was at 40.95 dollars per barrel, rebounding 0.54 percent on Tuesday.

A stronger dollar, on the likelihood of a US rate hike, also added to the lower oil prices this week.

At the meeting, OPEC oil ministers dropped any reference to a price ceiling highlighting disagreement among members on how to accomodate future Iranian output after sanctions are lifted.

U.S. shale oil output is expected to fall for a ninth consecutive month in January, the U.S. Energy Information Administration said on Monday, but this doesn’t significantly affect oversupply conditions, analysts said.

 

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