Business | Oil & Gas
Oil slides below $50
Crude oil fell below $50 a barrel in New York for the first time in almost two years as a recession in the US, Europe and Japan cut global energy demand.
- Bloomberg
- Published: 13:29 November 20, 2008
- Oil has dropped nearly $100 from its July record
- Image Credit: Gulf News Archive
New York: Crude oil fell below $50 a barrel in New York for the first time in almost two years as a recession in the US, Europe and Japan cut global energy demand.
Oil has dropped nearly $100 from its July record as the world economic crisis reduced global demand growth to its weakest in 23 years. Crude oil's continuing slide will add to concern that the US economy faces deflation, threatening investment in oil and gas production projects.
Crude oil for December delivery fell $3.50, or 6.5 per cent, to $50.12 a barrel at 10:06am on the New York Mercantile Exchange, after falling as low as $49.91. The contract last declined below $50 on January 18, 2007. Futures have dropped 66 per cent since reaching a record $147.27 on July 11.
The December contract expires on Thursday. The more-active January contract dropped $3.32, or 6.1 per cent, to $50.78 a barrel. It fell as low as $50.26 today.
“Prices are plunging down through $50 due to the serious economic slowdown, broad-based deleveraging and risk aversion,'' said Mike Wittner, head of oil market research at Societe Generale SA in London. “Demand growth in developed countries is contracting sharply.''
Brent crude oil for January settlement declined $2.98, or 5.8 per cent, to $48.74 a barrel on London's ICE Futures Europe exchange. Futures touched $48.20, the lowest since May 24, 2005.
Share this article
Related Articles
-
Opec will seek support as prices fall
Opec will seek others' support as prices fall
-
Oil rises to $56, rebounding from 22-month low
Oil rises to $56, rebounding from near 22-month low
-
More gas infrastructure needed in Middle East
More gas infrastructure needed in Middle East
-
Oil price climbs above $55
Oil climbs above $55 after scraping 22-month low
More from Oil & Gas
More from Business
Popular in Business
-
Budget travel
Airlines in the region
Take a pictorial look at some of the budget airlines in GCC
Business Editor's choice
-
New law to protect investor rights
Dubai land department is studying legislation to protect property purchasers
-
Global Village
Revamped layout featuring four cultures to greet visitors this season
-
Cloud computing is here to stay
Managing security effectively is critical when sharing data over the internet
