Oil continues plunging

16-Dec-14

Oil on the Nymex closed at US$55.9, the lowest finish since May 2009, while January Brent crude on London’s ICE futures exchange settled at US$61 a barrel. Oil continues on its downward trend. But a combination of ample supplies and concerns of waning global demand continued to weigh on oil prices. How much lower oil prices will sink remains to be seen as OPEC has not fixed a target for oil price. United Arab Emirates oil minister Suhail Al-Mazrouei said OPEC would stand by its decision to not reduce output, even if oil fell as low as US$40 a barrel and will wait at least three months before considering an emergency meeting, Bloomberg reported. “We are not going to change our minds because the prices went to US$60 or to US$40,”