Crude prices resumed their fall. Brent crude, a benchmark for global oil prices, dropped below the level of 42 US dollars a barrel for the first time since 2009. An issue of global oversupply still concerns the market and the OPEC’s decision to increase oil production is only worsening the situation. Besides, Iran and Iraq promised to expand crude exports next year adding fuel to the fire. Brent futures for January delivery depreciated by 2.7 cents to the level of 41.83 US dollars a barrel compared to its previous closing price. In case the crude benchmark keeps on moving downwards, prices are likely to enter the territory below 36 US dollars a barrel posting the lowest readings since 2004. Considering a close link between crude prices and the ruble, Russia’s currency could not stay intact on the back of the recent drop. The response was negative of cause. The ruble fell below the level of 69 against the US dollar for the first time since the beginning of autumn down by nearly 1 ruble compared to the previous day’s quotes. The petroleum exporting countries’ failure to agree on a production ceiling lets us propose that oil glut will continue to weigh heavily on global prices. Some experts think that the OPEC has lost control over the crude market and fundamental changes can take place only if demand exceeds production. The most negative forecast suggests that prices will land at 20 US dollars a barrel amid a lack of storage tanks for excess which is already observed.
