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Oil Hits A 5-Year Low | ||
| 08/12/2014 | ||
On Monday, Brent crude was down as much as 3.20% to $66.80 a barrel, its lowest level since 2009. West Texas Intermediate crude, the US benchmark, was in similar shape, losing more than 2% on Monday to fall as low as $64.13. Near 9:30 am ET, Brent was trading at around $67.45 and WTI crude was at $64.65. The chart below shows the devaluation of oil since it hit a record high in June. Brent fell from $115 to its current $67, a drop of about 40% In a report Friday, Morgan Stanley adjusted its forecasts for oil prices, saying oversupply would most likely peak next year with OPEC deciding not to cut output. "Without OPEC intervention, markets risk becoming unbalanced, with peak oversupply likely in the second quarter of 2015," Morgan Stanley analyst Adam Longson told Reuters. In a meeting 27 November, the oil producers' cartel announced it would not cut its output anytime soon, a move that aims at squeezing US domestic shale production according to many analysts. Morgan Stanley now expects prices to drop as low as $43 a barrel in 2015, meaning crude could lose a further $20 in the coming months. Mixed Chinese data hit a further blow to the oil price: the Asian giant reduced its imports in November by 6.7%. China's export growth slowed, too, a hint that the country could be facing a sharp slowdown. | ||
Last Update:: 08/12/2014 | ||
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