Oil price falls below $45 a barrel in fillip for UK driversComments Off on Oil price falls below $45 a barrel in fillip for UK drivers
Brent crude fell below $45 a barrel in London today for the first time in six and a half years, spurring hopes of even lower petrol prices for drivers but putting even more pressure on oil companies’ profits.
The price of Brent dipped $1.13 to $44.33 a barrel, its lowest since March 2009, while the US benchmark West Texan Intermediary fell $1.24 to $39.21, its lowest intraday price since February 2009.
Oil prices have fallen 30% since May with the latest sell-off sparked by Iran’s oil minister Bijan Namdar Zanganeh saying his newly rehabilitated country would expand output “at any cost” to defend its market share.
At the same time the number of active oil rigs in the US rose for the seventh time in eight weeks.
Most UK supermarkets cut fuel prices by 2p a litre on Friday to just under 110p for unleaded with hopes the price could drop below 100p if Brent goes under $40 a barrel.
Analysts also pointed out that the next month will see the end to the peak driving season in the US, which normally means a sharp fall in demand there.