Copyright © All rights reserved. NAVID NOOR © 2014 Website by PurpleZ.com

Oil hits five-year low on Opec report and US concerns


The price of oil has fallen to fresh five-year lows in the wake of two separate reports indicating a global supply glut. Opec oil producers released a forecast indicating less global oil demand next year.


A separate US report, which showed a surprise increase in the country's crude oil supplies, also pushed prices lower. The price of Brent crude has fallen 43% since mid-June. It fell another 3.61% to close at $64.41 on Wednesday.


Further fall?

The influential oil commentator Jorge Montepeque at price assessor Platts said the price could fall further. "There are a certain amount of people that think the mid-to-long term [price] is the mid-60's," he told the BBC.

"That means prices could fall further before they reach their balance. I think we could see some spikes or troughs that are a little bit deeper. But over time we could end up around $50 or $60 [a barrel]."


Cheaper air fares

The Energy Department says that if its projections hold, the price of petrol in the US will fall by 23% to $2.60 per gallon next year, saving the average US household approximately $550 a year.The decline in oil prices has hurt the share price of several large firms, from Exxon Mobil to BP, but helped businesses such as airlines where cheap oil prices can help buoy profits.Shares in US carriers American Airlines and United both ended slightly higher on Wednesday, while oil shares fell sharply.


The airline industry body, IATA, said passengers would see cheaper fares.


"We see prices for tickets coming down by 5.1% next year and cargo rates coming down more than that, probably by 5.8%," Antony Tyler, director-general at IATA told the BBC.


"Airlines' fuel prices are based on the previous month's oil price so airlines are not seeing the results of the falling oil price just yet."

Training courses

Learn more with proven online education. Find the career that is right for you

Speeches

This list of speeches includes those that have gained notability in English or in English translation. The earliest listings may be approximate dates

Social events

The Los Angeles and Orange County events calendar is your daily guide to concerts, shows, festivals, theatre, and all the entertainment LA and OC have to offer.

News

Comprehensive up-to-date business news coverage, aggregated from sources all over the world

  DIGITAL MARKETING   TRAINING COURSE


The course has opened so many doors for our students


Whether you are a new graduate or a established marketer who needs to upskill in digital, our Digital Marketing training course has the best professional education programmes to support every stage of your marketing career.