During Thursday’s trading session, with light volumes due to the US Thanksgiving holiday, Oil (Brent and WTI) fell by over 6% in just a few hours. This rapid decline picked up steam, with moves of 50 cent in a matter of minutes sentiment changed, with Oil trading down to a four year low.
At the beginning of Match US Oil traded over 105 dollars barrel, it is currently trading 68.50 dollars barrel, a significant move, which is concerning analysts. With many producers unable to break even at the recent prices, and some of the world’s major economies reliant on the revenue, there are fears the price decline could start a global recession.
OPEC 166th Meeting
Organization of the Petroleum Exporting Countries (OPEC) met yesterday in Vienna for their 166th time with traders eagerly awaiting the outcome, and the prospect of a cut in production. Following the decline in prices, it had been expected that OPEC members would announce an agreed cut in production, supporting the commodity. However OPEC disappointed traders and the oil price declined to a four year low.
Brent Crude January $71.99 / barrel
WTI Crude January $68.50 / barrel