Reuters reported, Brent crude fell below $100 a barrel for the first time since June 2013. Such a sharp slump was driven by subdued economic growth in the U.S. and China, the two top global oil consumers. On the whole, price for Brent Crude has sunk over 15% since July. As for West Texas Intermediate (WTI), it is still notably cheaper trading at $92 per barrel. It dropped to the lowest level in almost eight months.
September 8, the survey showed China’s imports shrank for a second month in a row, thus proving persistent weakness of the Chinese economy. At the same time, the U.S. jobs market added much fewer vacancies in August than analysts expected.
Moreover, oil prices were affected by the ceasefire in Ukraine agreed by the government and militants in East Ukraine. Oil is also maintained at low levels due to ongoing clashes between armed rebels in Libya and Iraq.
Importantly, Brent Crude and WTI is a barometer for oil prices worldwide. In particular, price of Russian Urals is set as a derivative of Brent.
