As the price of crude plummets to its lowest level in nearly a decade,analysts point to Opec’s recent ‘disarray’ and a warming weather sample as the main culprits – and judge we have yet to see the bottomCrude oil prices fell to their lowest levels since the 2007-08 global financial crisis this week, and further losses could be in the cards as the factors that led to lower values remain in force.
Following the decision on 4 December by the Organization for Petroleum Exporting Countries (Opec) to continue its strategy to seek market share rather than support prices, and US crude oil values broke under $40 a barrel. That sent values to their lowest levels since December 2008,when the front-month West Texas Intermediate crude-oil futures price fell to around $34. On Thursday, prices were trading at around $36.75 for the January futures contract.
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Source: theguardian.com