US oil price drops below $50 a barrel

The US oil price has dropped below $50 a barrel for the first time since April 2009.

The price of Brent crude also fell on January 5, dipping more than 6% to trade at below $53 a barrel.

The price of both Brent crude and US oil, known as West Texas Intermediate crude, have now lost more than half of their value since mid-2014.

Investors are worried that combination of a global supply glut and weak demand could cause prices to tumble further.

US oil production has soared recently, as fracking – or the process of extracting oil from shale rock by injecting fluids into the ground – has revolutionized oil production in the country, transforming states such as North Dakota and Pennsylvania in the process.

However, the increase in production has come just as economies across the world – from Europe to China – have slowed their once voracious demand for oil.

This, combined with OPEC’s decision to continue extracting oil at its current pace, has left many investors worried.

That has in turn led shares of many of the world’s leading energy firms, from BP to Exxon Mobil, to decline sharply over the past few months.

eTrPRQrMaxg
Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

Recent Posts

White House 2024: Voter Fraud Claims Flood Social Media

Misleading allegations, rumours and outright lies about voting and fraud are flooding online spaces in…

1 day ago

Spain: At Least 158 Killed In The Country’s Worst Flooding Disaster

At least 158 people have died in Spain's worst flooding disaster in generations. On October…

4 days ago

Russia Fines Google $20,000,000,000,000,000,000,000,000,000,000,000, Surpassing Global GDP

Google has been fined two undecillion (a two followed by 36 zeroes) roubles by a…

4 days ago

Financing Your Home Remodel: 7 Tips for Success

Embarking on a home remodel is an exciting journey, promising enhanced comfort, increased property value,…

2 weeks ago

Donald Trump Serves Up McDonald’s Fries While Kamala Harris Celebrates 60th Birthday with Church Choir

The US presidential candidates continued to campaign across key swing states on October 20. Footage…

2 weeks ago

America PAC: Elon Musk Promises to Award $1M Each Day to Swing States Voters

Elon Musk has said he will give away $1 million a day to a registered…

2 weeks ago