Oil Plunges to Below $40 a Barrel
Posted on 23. Dec, 2008 by admin in Crude Oil, Forex News
Crude Oil prices slid yesterday, approaching a four-and-a-half year low as the recent record production cuts from the Organization of the Petroleum Exporting Countries (OPEC) failed to spark a rally in the price of Crude Oil last week. The price of Crude ended the day at 39.71, and appeared to be holding below the $40 mark, a big psychological barrier. This marks a drop of nearly $4.50 a barrel, one of the biggest daily price drops of Oil in months.
Traders have shrugged off any type of support in the market for Oil, as the global recessions continues to worsen. This in turn has driven the price of Crude lower. Two large production cuts by OPEC, volatile equity markets, and poor fundamental data have failed to boost the price in recent trading days. The price of Crude Oil is likely to remain below the $40 mark until after the U.S. holiday season.
