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