Oil price crashes below $30 a barrel
16 January 2016, Nirapad News: Oil prices crashed 6.0 per cent on Friday to close below $30 a barrel for the first time in 12 years, resuming this year’s breathtaking rout as Chinese stock markets fell further and traders braced for an imminent rise in Iran’s exports.
After closing higher for the first time in eight sessions on Thursday, US and Brent crude futures plumbed new lows, taking this year’s losses to more than 20 per cent, the worst two-week decline since the 2008 financial crisis.
The slump was not over yet, some analysts warned, as the lifting of sanctions on Iran opens the door to a wave of new oil. The International Atomic Energy Agency (IAEA) is expected on Saturday to issue its report on Iran’s compliance with an agreement to curb its nuclear program, potentially triggering the lifting of Western sanctions.
Shares in China, the world’s No. 2 oil consumer, tumbled on Friday, with the Shanghai index ending down 3.5 per cent to its lowest close since December 2014 and the yuan weakening sharply offshore. Adding to fuel demand concerns, US data showed retail sales fell and industrial production weakened in December.
Brent LCOc1 settled down $1.94, or 6.3 per cent, at $28.94 a barrel, sticking below the pivotal $30 a barrel mark after briefly dipping below that level in the previous two days. It fell as far as $28.82, the lowest since February 2004, according to Reuters.