Oil Is Crashing
Oil prices are sliding even further in early trading, with the commodity stumbling for the fifth consecutive day.
Brent crude fell 90 cents, or 1%, to $81.92, its lowest value since 2010.
While West Texas Intermediate (WTI) crude dropped to $76.59, down 70 cents from yesterday. It was its lowest reading since September 2011.
However, it fought back on Wednesday and is now trading at $76.94
The FT reports that both Brent and WTI prices are down 29% from their peak in June this year, when the advance of ISIS had threatened to sink production in Iraq.
The oil price collapse is particularly hitting countries like Venezuela, Nigeria and Saudi Arabia. However, analysts report that the Saudis are prepared to let the price slip even further to preserve their share in the US market, which has come under intense pressure from the shale boom.
In order to make a profit, shale oil producers need the crude price to be around $76-77, otherwise their product would not be competitive against overseas production. Saudi Arabia, the world's largest producer of crude, is determined to maintain its position against competitors in the US.
The oil price is also impacting the Russian economy, already shattered by Western sanctions over Ukraine. Today the Rouble hit a new record low despite billions of dollars being spent by the country's central bank to prop it up.
- US-China tariff war could benefit several sectors in India while harming a few others
- Amid heatwave, Delhi's power demand soars to May's highest ever at 7,572 MW
- 84% of Indian small businesses anticipate robust growth in 2024: CPA Australia survey
- Go Digit IPO allotment – How to check allotment, GMP, listing date and more
- 10 breathtaking valleys to visit in India in 2024
- Nothing Phone (2a) blue edition launched
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market