Oil rebounds after dipping to five year low of US$66 per barrel

10-Dec-14

The price of Brent crude rebounded on Tuesday afternoon after hitting a new five-year low of US$66 per, as per theweek.com. Prices tumbled by almost US$3 a barrel on Monday following a forecast from Kuwait that the cost per barrel would hover around the US$65 mark until at least next summer. After oil prices continued a downward trajectory in early trading, some buyers eventually emerged, apparently anticipating that prices are now bottoming in the wake of a 40% slide since June. The sharp drop in oil prices has been caused by rapid growth of US shale output and concerns that the global oil glut will continue well into 2015 following the decision of OPEC not to cut production when the organisation met in Vienna last month.