Brent crude price at lowest level in 5½ years
Cost per barrel falls below $57 amid supply glut
Oil markets have been heavily oversupplied this year due to increasing output from US shale and lower-than-expected consumption
Brent crude fell to a 5½-year low of less than $57 (€47) a barrel yesterday as a global supply glut outweighed lost supply from Libya where battling militias have closed ports.
The oil benchmark recovered ground later but was on track for its second weakest month since the global financial crisis of 2008, and traders said the sell-off that has halved crude prices in six months showed no sign of ending.
Brent fell $1.14 a barrel to $56.74, its lowest since May 2009, before recovering to trade around $57.70, down 18 cents, by 2.40pm. US crude was up 10 cents at $53.71 after hitting $52.70.
Oil markets have been heavily oversupplied this year due to increasing output from US shale and the lower-than-expected consumption as a result of faltering global economic growth. – Reuters