The massive, continuous slump in oil prices has continued into the first weeks of this year's trading, with crude oil prices dropping more than an additional five percent on Monday, reaching new 12-year lows, according to Bloomberg Business. During trading on Monday, U.S. West Texas Intermediate (WTI) crude dropped $1.50, settling at $31.37 per barrel, its lowest level since December 2003. On the other hand, Brent crude futures went dropped 6.6 percent, settling at $31.31 a barrel.
Analysts have stated that the continuous drop in oil prices is due to problems with both supply and demand, with companies still producing the same amount of crude oil and massive consumers such as China possibly reducing oil consumption in the present year, reports ABC News.
David Hufton, of prominent oil broker PVM Oil Associates, stated that the current trends in the oil market seem to indicate that the slump in prices would be going on for a significant amount of time.
"If the first week is anything to go by we are in for a long, volatile and very exhausting year. The week started on a bad note and ended on a good one but the market response, worryingly, was the same to both - sell, sell, sell," he said, according to Reuters.
With the oil industry reaching its lowest levels in years, consumers, at least, would continue to enjoy added savings from conventional gas prices.
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