OIL PRICES

摘要

Over-supply of crude continues to weigh on the world oil markets. European benchmark Brent has now dipped below the US$70-mark, reaching US$66.19 per barrel on December 8. Meanwhile, West Texas Intermediate (WTI) fell even further and is standing at US$63, mainly as a result of the shale oil glut. Despite economies like Iran, Russia and Venezuela suffering acutely because of the precipitous decline in oil prices, OPEC elected not to cut output at its November 27 meeting. While demand for crude has not actually fallen, supply is outpacing demand fundamentals. While this is good news for consumers, it has accentuated deflationary pressures in the world economy and hit oil-exporting countries especially hard. The consensus suggests that Brent will remain relatively weak.