Oil prices hit multi-year lows as OPEC decision weighs

December 1, 2014
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US benchmark West Texas Intermediate (WTI) for January delivery dipped $1.49 in midday Asian trading to $64.66, its lowest intraday level since July 2009/FILE
US benchmark West Texas Intermediate (WTI) for January delivery dipped $1.49 in midday Asian trading to $64.66, its lowest intraday level since July 2009/FILE
SINGAPORE, Dec 1 – Oil tumbled to new multi-year lows in Asia on Monday, extending a sharp sell-off last week that came in response to OPEC’s decision to maintain crude output despite a supply glut and plunging prices.

US benchmark West Texas Intermediate (WTI) for January delivery dipped $1.49 in midday Asian trading to $64.66, its lowest intraday level since July 2009.

Brent crude for January sank $1.64 to $68.51, to stay below the psychologically important $70 level. It had touched $67.90 earlier Monday, its lowest since February 2010.

“Negative actions in the oil market are continuing today. Investors see crude as remaining vulnerable after last week’s OPEC announcement,” Michael McCarthy, chief market strategist at CMC Markets in Sydney, told AFP.

“We have not yet seen any piece of news or development that could trigger a bottoming out phase in oil prices,” he added.

The unabated price plunge comes after the 12-nation Organization of Petroleum Exporting Countries (OPEC) opted Thursday to keep its collective output ceiling at 30 million barrels per day, where it has stood for three years.

OPEC ignored calls for a cut that have grown as an oversupply and weak demand have wiped more than a third off prices since June, with analysts warning of further falls to come.

“OPEC’s decision leaves demand and supply rebalancing to the market,” banking group ANZ said in a market commentary.

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