30th January 2015
The price of a barrel of crude oil is holding steady below the $50 mark and remains on track to record its seventh consecutive monthly decline as stocks of oil continue to pile up.
It seems that producers of oil are adamant to maintain output levels despite slowing global demand and the build-up of stockpiles.
Recent data highlighted that US crude oil inventories reached their highest levels since the 1930s. This persistent oversupply threatens the possibility of further declines in the price of oil.
The price of Brent crude is set to record a fall of around 14 per cent in January and over 50 per cent since summer last year, while US oil prices sank to a five-year low.
Oil’s continuing slump has begun to impact such multinational corporate giants as Royal Dutch Shell, who announced plans to slash spending by $15 billion due to the oil price collapse. The energy company’s share price lost around five per cent on the news.
It seems that low oil prices will persist for some time, as the International Energy Agency this month said a price rebound could be a while in coming.
Begin trading today! Create an account by completing our form
At One Financial Markets we are committed to safeguarding your privacy.
Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.
Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.
Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.
By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.