Oil prices continue falling in world market. The US NYMEX crude price went down to $50.14 a barrel. Brent dropped to $53.27 a barrel on ICE Futures Europe.
Global financial markets fell into a tailspin yesterday after the price of Brent crude oil slumped below $53 a barrel for the first time since May 2009 and fears over a Greek exit of the eurozone escalated.
The commodity–heavy FTSE 100 dropped 130.64 points – or 2pc – to 6,417.16, wiping almost £36bn off the value of the country`s biggest companies. It meant the UK`s bluechip index, dragged down by oil producers and mining companies, recorded its worst first Monday of the year on record.
Brent crude, the benchmark made of oil from 15 North Sea fields against which almost half the world`s petroleum is priced, sank to $52.66 (£34.59) per barrel, before settling at $53.11. West Texas Intermediate, another major benchmark for the US oil market, also slumped to a five–year low, at $49.95 per barrel.
In Europe, poor German inflation data that suggested the eurozone was edging closer to deflation, also frayed investors`s nerves. Meanwhile the dollar surged, with the euro dropping as low as $1.1864, its lowest level since early 2006, and sterling losing ground against the greenback, slumping to $1.5176.
The Greek stock market, which endured a torrid 2014, slumped a further 5.6pc after investors took fright at reports suggesting that Germany was braced for a Greek departure from the euro area, which would be an unprecedented exit.
Note that the oil price has fallen to its lowest level since May 2009.
Oil price crashes through $53 barrier sparking equity sell-off
06 January 2015
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