The price of Brent crude oil declined to a five-year low, below $68 a barrel today, following OPEC’s decision last week to not cut production.
Reuters reported that Brent hit a low of $67.53 a barrel, the lowest since October 2009, while US crude fell to $64.70 a barrel.
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Saudi Arabia did not agree to the output reduction proposed by other members of the OPEC group due to abundant oversupply in world markets.
Brent oil has fallen more than 12% following OPEC’s production policy meeting last Thursday, while oil prices have declined about 40% since June.
The decline has encouraged oil producers from Iraq to Nigeria to revise their 2015 budgets in order to reflect lower prices.
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Several media reports say that Iran Oil Minister Bijan Zanganeh was not in favour of OPEC’s decision to not limit production output.
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By GlobalDataChina’s slower than projected manufacturing sector is expected to add further pressure on oil prices.
A study by the Chinese Government has revealed that the country’s official Purchasing Managers’ Index (PMI) dropped to 50.3 in November.
Petromatrix analyst Olivier Jakob was quoted by Reuters as saying: "In the fourth quarter, oil markets have lost the support of both the invisible hand of the U.S. Fed and OPEC."
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