Brent oil price dips below $46, lowest since March 2009

By Ovunc Kutlu

AA ENERGY TERMINAL - AUGUST 21, 2015

Brent crude oil price fell below $46 per barrel on Friday, to a new low since March 2009, reaching $45.73 at 13:00 pm GMT, according to official figures Friday.  The global benchmark fell by more than 0.6 percent and was recorded at $45.98 per barrel after 12:30 pm GMT, after it opened the day at just over $46 per barrel.   Meanwhile, the American benchmark, West Texas Intermediate, fell to $40.88 per barrel on Friday by 1.25 percent.   Both benchmarks have declined around 60 percent between June 2014 and January 2015, reaching their lowest level in almost six years. Although recording a recovery of 40 percent after January, crude oil prices began falling in May once again and erased the four-month gains in August.  The glut of oil supply in the world market, low global demand for oil, and the slowdown in Asian and European economies are viewed as the main factors behind the slump of oil prices.  Rising oil inventories and production in the U.S., along with the possibility of Iran raising its oil output and exports in the next few months after sanctions removal are also creating expectations that oversupply will remain in the market, thus pushing oil prices downward.

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