Should We Expect Fuel Price Decrease? US Oil Price Falls Below $50

Investors are worried that combination of a global supply glut and weak demand could cause prices to tumble further

  • Published:
24/7 Live - Subscribe to the Pulse Newsletter!

The  BBC reports that US oil price fell below the symbolic threshold of $50 a barrel for the first time since April 2009, before finishing the day at $50.05. The price of Brent crude also fell on Monday, dipping 6% to $53 a barrel. The price of both Brent crude and US oil, known as West Texas Intermediate crude, have now lost more than half of their value since mid-2014.

Investors are worried that combination of a global supply glut and weak demand could cause prices to tumble further. US oil production has soared recently, as fracking - or the process of extracting oil from shale rock by injecting fluids into the ground - has revolutionised oil production in the country, transforming US states such as North Dakota and Pennsylvania in the process.

However, the increase in production has come just as economies across the world - from Europe to China - have slowed their once voracious demand for oil. This, combined with Opec's decision to continue extracting oil at its current pace, has left many investors worried. That has in turn led shares of many of the world's leading energy firms, from BP to Exxon Mobil, to decline sharply over the past few months.

Meanwhile Ghanaian pressure group Occupy Ghana has served notice it will still pursue a court action over the current fuel prices despite the 10 percent reduction in prices by the National Petroleum authority (NPA). The group, which is calling for a 50 percent reduction, described the 10 percent reduction by the NPA as inadequate. They had threatened to go to court if the NPA failed to reduce the prices of fuel in line with the prevailing price of crude oil on the world market.

However, after the reduction, a member of Occupy Ghana, Sydney Casely-Hayford said they would still go to court to seek further clarification in the NPA’s pricing mechanism for petroleum products.

Download our mobile app today.

Android - Google Play Store

iPhone - Apple App Store

Recommended Articles

Recommended Videos





Top Articles

1 Photo Duncan Williams leads prayers at Donald Trump's inauguration servicebullet
2 Gambia Crisis Twitter explodes with rage over Hanna Tetteh's tweetbullet
3 Asantehemaa's Death Funeral of Asantehemaa underway [Photos]bullet
4 Corruption I'll make sure Opuni goes to jail - Kennedy Agyapongbullet
5 Francisca Oteng-Mensah 24 year old MP complains about unbearable...bullet
6 Asantehemaa’s Funeral Nana Afia Kobi to be buried with gold...bullet
7 Asante Kingdom This is Osagyefo Bayie, the acting Asantehemaabullet
8 Gambia Crisis Ghana deploys military to Gambiabullet
9 Leadership UN appoints ex-president Mahama to top positionbullet
10 Manhyia Palace One shot, several collapse at...bullet

Top Videos

1 In Zimbabwe President Mugabe’s 70 year-old aide marries his 23-year-old...bullet
2 Refugee Ghanaian to lose fingers after 7-hour trek to cross US borderbullet
3 Vitiligo Enam Honya - is challenging what you think about beautybullet
4 Obinim What happen'd when we fact checked Obinim's Bible knowledgebullet
5 Video Taxi driver terrified after an encounter with a ghostbullet
6 Woyome Judgement Debt Kweku Baako dances over Amidu's winbullet
7 Kwame Nkrumah Interchange Water leaks from hole in wall at...bullet
8 Obinim saga We had sex only once - Obinim victims confessbullet
9 Watch Kumchacha delivers Counselor Lutterodt from 'demons'bullet
10 Bishop Obinim Saga Teenagers disciplined by Obinim...bullet

News