Skip to main content

Oil price reduced



Oil prices have fallen again amid renewed worries about low global growth with Brent crude near four-year lows.

Brent crude dropped to $87.74 a barrel, its lowest since December 2010, before recovering some ground to $88.12.

US light crude oil was down $1.40 at $84.42, close to a two-year low.

The prospect of weak economic growth cutting demand for oil has hit prices. In addition, key Opec producer Saudi Arabia has signalled it could cope with lower prices.

Last week, the International Monetary Fund shaved its forecast for global growth for this year from 3.4% to 3.3%.

It said overall global growth would be held back by weakness in Japan, Latin America and Europe, with any recovery in the advanced economies "weak and uneven".

The gloomy growth outlook continued to weigh on stock markets on Monday, with the main European indexes all opening lower following hefty falls last week.

Key changes

Although some members of the Opec oil producers' cartel are pushing for production cuts to take the oil price back to the $100-a-barrel level, Saudi Arabia has let it be known informally that it would be unlikely to push for a cut in production to boost prices even if they fell to $80 a barrel.

Oil prices have fallen 20% since June.

Kuwait's oil minister, Ali al-Omair, was quoted as saying by state news agency KUNA over the weekend that a price of $76-$77 a barrel might be the floor price.

That is what it costs to produce a barrel of oil in Russia and the US, so any lower could mean producers mothballing production or running at a loss.

There have been two significant changes in the oil market recently.

At the start of this month, Saudi Arabia said it would cut its selling price for oil in a move to protect its market share, something that was described as a "structural change" as Saudi Arabia had never explicitly competed on price.

The other more dramatic development has been the growing extraction of shale oil in the US, which has increased the country's production of oil significantly.

The International Energy Agency has forecast that the US will soon overtake Saudi Arabia and Russia to become the world's biggest oil producer.
Credit: BBC

Comments

Popular posts from this blog

PFM Act to guide local government authority borrowing

By: Fred Yaw Sarpong
The bill, Public Financial Management (PFM) Act 921 which has been passed into law by Parliament is to guide public institutions especially the local government authority borrowing. The law was pass on 3rdAugust, 2016
According to the law, local government authority, a public corporation or state-owned enterprise is liable for the debt and other obligations without recourse to Government, unless otherwise explicitly guaranteed by Government in accordance with this Act.
Madam Eva Esselba Mends, the Chief Economic Officer and Group Head of PFM at the Ministry of Finance told the Daily Express that the law involves a lot but it also give instruction to how state institutions can borrow especially with the  local government authority.
She mentioned that there is no specific law in place that gives direction as to what local authority can do when it comes to borrowing by the authority. Other public corporations sometimes borrow with huge amount for their operation but loca…

Tigo donates 540 tablet phones Death and Birth Registry

By: Sarpongs.blogspot.com 
Tigo Ghana has presented 540 tablets phones with internet connectivity to the Births and Deaths Registry (BDR) for the pilot phase of the automated birth registration programme.
This form parts of Tigo’s strategic focus to accelerate birth registration in Ghana through mobile technology. Tigo in partnership with UNICEF is providing this technology platform.
A statement from Tigo stated that the tablets will allow birth registration attendants from the Births and Deaths Registry to electronically capture details of all new births in 300 communities across Ghana.
The automated birth registration programme which was launched in May this year, is expected to make a significant contribution to an improved national average registration rate, an increase from 65 percent of all children under age one to at least 75 percent by the end of 2017.
According to Tigo, a successful pilot will also contribute to progress under Ghana’s National Civil Registration and Vital Statist…

Vodafone fined a record £4.6 million for IT blunder

A top-up error left pay-as-you-go customers out of pocket and complaints were mishandled
Vodafone has been fined a record £4.6 million by the telecoms watchdog forleaving thousands of customers out of pocket in a disastrous IT blunder.
Ofcom found that the operator mishandled complaints and failed to pay into the accounts of more than 10,000 pay-as-you-go customers when they topped up their credit.
The top-up error, which cost customers £150,000 over 17 months in 2014 and 2015, stemmed from the moving of 28.5 million accounts to a new billing system.Errors in billing data and price plans caused so much protest that it made Vodafone the most complained-about mobile network in Britain.The technical issues were resolved by April 2015 and all accounts are now on the new system, Vodafone said.
Lindsey Fussell, Ofcom’s consumer group director, said:“Vodafone’s failings were serious and unacceptable, and these fines send a clear warning to all telecoms companies.”
The company says that it has ref…