Discussion:
oil price drop approx USD40 a barrel...............
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Damned-Virus-Data Miner providers
2008-11-20 23:40:18 UTC
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Hello to all,
Have a nice day reading the below news............

Oil prices slump under $50 per barrel

AFP - Friday, November 21LONDON (AFP) - - Oil prices tumbled under 50
dollars a barrel in London and New York on Thursday as the crude
market was plagued by weak energy demand, traders said.

ADVERTISEMENT

In New York, light sweet crude for delivery in December dived to 49.91
dollars a barrel -- the lowest level since January 18, 2007.

Brent North Sea crude for delivery in January tumbled to 48.20 dollars
a barrel -- last reached on May 24, 2005. The contract had closed on
Wednesday at 51.72 dollars.

Prices went on to recover slightly, with New York oil at 50.98 dollars
and Brent at 49.27 dollars.

Crude oil prices have plunged almost two-thirds since striking record
highs above 147 dollars in July as a global economic slowdown dents
world energy demand.

"The recent fall in prices largely reflects concern that OPEC is
unwilling to make the oil output adjustments necessary to compensate
for weakening oil demand," said Dresdner Kleinwort analyst Gareth
Lewis-Davies.

On Monday, the Organization of the Petroleum Exporting Countries
(OPEC), whose members produce 40 percent of the world's oil, said it
was ready to intervene on a regular basis to help prop up prices.

But analysts doubt whether OPEC was even fully carrying out a promise
to reduce production by 1.5 million barrels of oil per day from
November 1.

The latest weekly US Department of Energy (DoE) report on energy
stockpiles had Wednesday showed a sharp drop in fuel demand across the
United States, the world's biggest oil consuming nation.

Crude futures are likely to drop further to 43 or 44 dollars a barrel
before rebounding along with the global economy next year, CFC Seymour
Securities said in a report published on Wednesday.

The London-based Centre for Global Energy Studies (CGES) on Tuesday
forecast a contraction in global demand for the first time in 25 years
amid a severe global economic slowdown.

Meanwhile on Thursday, traders shrugged off news that US oil group
Chevron had suspended export contracts on much of its Nigerian
production after a militant attack on a key pipeline.

Chevron said it was declaring "force majeure" until December 31
following the attack last Friday on the pipeline which carries
supplies to its Escravos terminal in the Niger Delta.

The measure exempts a party from liability for failing to meet
commitments due to circumstances beyond its control.

A company spokesman in Lagos on Thursday said that about 90,000
barrels of oil a day had been affected.

Militant attacks on oil pipelines, other facilities and workers since
January 2006 have slashed Nigeria's daily production from about 2.6
million barrels to about two million now.

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Written and adapted from Yahho News by:


Dr, MR Franc MBBS (PhD) GPS Ang Poon Kah
***@email.com
mode 2 first generation government people of Singapore
Assistant FED Chief (Internationale)
kingkong
2008-11-21 00:17:43 UTC
Permalink
Whoa....

At US$50 a barrel, country such as Iran are effectively bankrupt.

Their entire govt budget is based on US$90 a barrel of oil.
Post by Damned-Virus-Data Miner providers
Hello to all,
Have a nice day reading the below news............
Oil prices slump under $50 per barrel
AFP - Friday, November 21LONDON (AFP) - - Oil prices tumbled under 50
dollars a barrel in London and New York on Thursday as the crude
market was plagued by weak energy demand, traders said.
ADVERTISEMENT
In New York, light sweet crude for delivery in December dived to 49.91
dollars a barrel -- the lowest level since January 18, 2007.
Brent North Sea crude for delivery in January tumbled to 48.20 dollars
a barrel -- last reached on May 24, 2005. The contract had closed on
Wednesday at 51.72 dollars.
Prices went on to recover slightly, with New York oil at 50.98 dollars
and Brent at 49.27 dollars.
Crude oil prices have plunged almost two-thirds since striking record
highs above 147 dollars in July as a global economic slowdown dents
world energy demand.
"The recent fall in prices largely reflects concern that OPEC is
unwilling to make the oil output adjustments necessary to compensate
for weakening oil demand," said Dresdner Kleinwort analyst Gareth
Lewis-Davies.
On Monday, the Organization of the Petroleum Exporting Countries
(OPEC), whose members produce 40 percent of the world's oil, said it
was ready to intervene on a regular basis to help prop up prices.
But analysts doubt whether OPEC was even fully carrying out a promise
to reduce production by 1.5 million barrels of oil per day from
November 1.
The latest weekly US Department of Energy (DoE) report on energy
stockpiles had Wednesday showed a sharp drop in fuel demand across the
United States, the world's biggest oil consuming nation.
Crude futures are likely to drop further to 43 or 44 dollars a barrel
before rebounding along with the global economy next year, CFC Seymour
Securities said in a report published on Wednesday.
The London-based Centre for Global Energy Studies (CGES) on Tuesday
forecast a contraction in global demand for the first time in 25 years
amid a severe global economic slowdown.
Meanwhile on Thursday, traders shrugged off news that US oil group
Chevron had suspended export contracts on much of its Nigerian
production after a militant attack on a key pipeline.
Chevron said it was declaring "force majeure" until December 31
following the attack last Friday on the pipeline which carries
supplies to its Escravos terminal in the Niger Delta.
The measure exempts a party from liability for failing to meet
commitments due to circumstances beyond its control.
A company spokesman in Lagos on Thursday said that about 90,000
barrels of oil a day had been affected.
Militant attacks on oil pipelines, other facilities and workers since
January 2006 have slashed Nigeria's daily production from about 2.6
million barrels to about two million now.
Email StoryIM StoryPrintable ViewBlog This
Dr, MR Franc MBBS (PhD) GPS Ang Poon Kah
mode 2 first generation government people of Singapore
Assistant FED Chief (Internationale)
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