Oil at lowest price since April 2009
Crude oil reached a new low today, closing at 48 USD a barrel, the lowest point since April 2009, the result of a global glut in oil supply and a rising USD, meaning that demand is further restricted.
Crude oil fell 4.2 % today, or $2.11, on the New York Mercantile Exchange, closing at $47.93 per barrel. Brent fell 3.8%, or $2.01, also its lowest point since April 2009. Experts say that both benchmarks could fall even further in the near future, as the global demand is reduced and supply is high. Nymex crude experienced a fall of 46% in 2014 and in the first three trading days of 2015 has lost a further 10 per cent.
Apart from the supply and demand vector, analysts also point to other factors which are creating a bearish (tendency to decline) trend, namely a rising USD and another round of fears over the Greek Debt. The oversupply currently experienced in the markets has been aided by the increase in horizontal drilling and fracking in the USA as more and more natural gas hits the markets.