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Tuesday, 25 December 2018 11:00

Oil plunges to the lowest level

Oil plunges to the lowest level

Oil prices plunged more than 6 percent to the lowest level in more than a year on Monday, pulling back sharply late in the session as fears of an economic slowdown rattled the market, Caspian Energy News (www.caspianenergy.net) reports with reference to Reuters.

U.S. crude futures and global benchmark Brent hit their lowest levels since 2017 during the session, putting both benchmarks on track for losses of about 40 percent in the fourth quarter.

“What’s happening in the stock market is raising fears that the economy is grinding to a halt and thereby will basically kill any future oil demand,” said Phil Flynn, an analyst at Price Futures Group in Chicago. “They’re pricing in a slowdown in the economy if not a recession with this drop.”

The fourth-quarter price decline is likely to cause producers to throttle back on their output, he said.

U.S. crude futures have hit the lowest level since June 22, 2017, as jitters have grown about the impact of the escalating U.S.-China trade dispute on global growth and crude demand. Brent crude is at its lowest level since Aug. 17, 2017.

More details: https://in.reuters.com/article/global-oil/oil-falls-more-than-4-percent-following-stock-market-down-idINKCN1ON050

Person in charge of the newsline: Olga Nagiyeva 

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