AP - Oil prices plunged below $82 a barrel Monday in Asia, extending big losses on expectations that disruption to air travel from the Icelandic volcano will undermine the global economic recovery and crude demand.
Oil prices plunged below $82 a barrel Monday in Asia, extending big losses on expectations that disruption to air travel from the Icelandic volcano will undermine the global economic recovery and crude demand.
STOCKHOLM (Reuters) - Two earthquakes measuring more than magnitude 5 hit Iceland's Bardarbunga volcano overnight and overall seismic activity remained high, the country's Meteorological Office said on Wednesday.
London (AFP) - Global stock markets slumped Tuesday as oil prices struck fresh five-year lows, China clamped down on speculative trading and Greece sparked renewed worries about the eurozone. "Misery loves company; never has this been truer than on the markets today," said Connor Campbell at Spreadex traders.
Brent crude oil sank below $101 a barrel on Monday to a nine-month low after bleak Chinese and U.S. data stoked worries of a slowdown in economic growth in the world’s top oil consumers.
China’s economic recovery unexpectedly stumbled in the first three months of 2013, with growth easing to 7.7% from 7.9% in the final quarter of last year. Economists had forecast 8% growth.
Tests carried out during the recent eruption of an Icelandic volcano will allow experts to better forecast the effect on air travel caused by volcanic ash clouds, a scientist said Wednesday.But there must still be better cooperation with civil authorities to ensure that disruption to air travel is kept to a minimum, German expert Ulrich Schumann said at a conference for geoscientists in Vienna.
For five consecutive months OPEC produced over its alleged quota. Nonetheless, and in spite of falling prices and pleas from Venezuela to restrict production, OPEC decided to take no action. In the wake of the news, West Texas Intermediate plunged nearly 7% and Brent fell over 8%. WTI Crude Futures
US crude oil price plummeted more than $2 or 2.1% yesterday, closing at $98.2 per barrel yesterday. As of 8:45 am EDT, crude oil prices were further done 50 basis points (bps) at $97.69. Production at peak levels from US refineries and shutdown of the Kansas refinery are some of the reasons that contributed to the major decline in US crude oil prices.
Oil prices returned to their downward spiral Monday, with U.S. crude coming to rest at a six-year low of US$43.88 a barrel, after touching as low as US$42.85 earlier in the day.
Canadian benchmark crude oil slid below $30 per barrel, as the oil patch braced for a second round of bloodletting, with prices yet to find a bottom as OPEC continues to cut demand projections and expectations rise for sanctions relief for Iran that would flood yet more supply onto world markets.
Goldman Sachs Group Inc. said it didn’t expect oil demand to recover so quickly and its forecast for crude at US$40 a barrel may be too low.
While the bank projects that oil will still reverse its recent advance, the failure of global inventories to increase amid weather-related disruptions and stronger-than-expected demand means there’s a risk prices will miss its target for the next two quarters, according to a report dated March 8. Morgan Stanley also said the oil market was “surprisingly healthy.”