Oil Price crashes to 4 yr low

Posted by Oilism.com on December 28th, 2008 at 03:22pm

Oil prices significantly lower! In London quoted a barrel of Brent oil $ 37.49, its lowest level since December 2004.

The prices of crude oil fell more than expected last week on US oil markets. Due an Oil stock report published on Wednesday by the U.S. Department of Energy. These figures showed a stronger increase than most analysts expected. The stocks of crude oil increased with 3.101 billion barrels to 318.188 billion barrels of crude oil.

In Cushing, Oklahoma, oil stocks rose with 1.2 million barrels to a record high of 28.7 million barrels. This stock is used for the distribution of the oil used for Nymex future trading markets. Petrol stocks rose by 3.336 billion barrels to 207.295 billion barrels. Analysts here calculated an increase of 600,000 barrels. The stocks of heating oil and diesel increased also a lot stronger than expected, 1814 million barrels to a grand total of 135.337 billion barrels. Analysts here assumed a decline of 100,000 barrels. It is obvious our oil specialist, future brokers and technical analysts were betting on the wrong side again the last couple of weeks. Worldwide oil markets are showing drastic volatile downwards moves since the summer of 2008. This picture shows oil prices from 2001 till 2009 and it may be clear that oil prices of 200 USD are far away and we are back on the levels of 2004 within six months time.

Wow what a rollercoaster ride it was!

Our reporters tell us sentiment is on its lowest and that counts the same for the trade. ‘It’s because of the world economy and the underlying feeling that there is no better side on this moment, “said an oil trader in London. “There is also a lack of buyers in the market, the price terms.” Because of the weak outlook for the world economy, many analysts and traders think that the downward trend in oil prices probably will continue for a while. “I expect that we will descend toward the $ 30, then you will see that a few big buyer will be back … It will all depend on the weather and what OPEC exactly will do in 2009,” said associated trader in London.

Under Crude oil+ Historical oil prices+ Oil Price 2008+ Oil Price 2009+ energy prices