Brent oil price dives to new 2-year low under $90

GMT 18:15 2014 Thursday ,09 October

Arab Today, arab today Brent oil price dives to new 2-year low under $90

Brent oil price
London - AFP

Brent oil sank Thursday to a new two-year low underneath $90 per barrel, hit by plentiful supplies and the weak global demand outlook, traders said.
At 1620 GMT, Brent North Sea crude for delivery in November fell to $89.90, striking the lowest level since June 25, 2012. The contract later stood at $90.29, down $1.09 from Wednesday.
Earlier this year, European benchmark Brent had peaked at $115.71 in mid-June, but has since slumped on the back of abundant supplies, tepid demand and the strong dollar.
"Most if not all of the recent news flow has been price-negative, with demand forecasts being revised lower while supply continues to rise," said Saxo Bank analyst Ole Hansen.
"Supply gains are being posted by both the US and among OPEC members who continue to produce more than their stated target of 30 million barrels per day."
In recent months, the market has faced a raft of downgrades to growth forecasts for global oil demand.
Mounting economic concerns in China and the eurozone have also sparked stubborn worries over demand for crude.
At the same time, buoyant supplies in the United States -- boosted by surging shale energy production -- have dimmed US demand for oil.
Added to the picture, geopolitical concerns in major energy-producing regions like Iraq and Ukraine have failed to cause major disruptions to global oil supplies.

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