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.
The Bardarbunga volcano system has been rocked by hundreds of tremors daily since mid-August, prompting fears the volcano could explode. Bardarbunga, at 2,000 metres, is Iceland’s second-highest peak and is located under Europe’s largest glacier, Vatnajoekull.
Activity surrounding the volcano has been happening since mid-August, creating fears that Bardarbunga might cloud the skies and disrupt air travel much like another Icelandic volcano, Eyjafjallajokull, did in 2010. So far, the 2014 eruption of Bardarbunga has not done so.