Oil price dips below $50 a barrel

BY CHARL BOSCH - JANUARY 7, 2015

Brent crude oil has tumbled to its lowest level since May 2009. According to i-Net Bridge, oil was trading at $49.90 a barrel by 11h00, a decline of 55% since June last year. In the US, the price for Light crude, also known as West Texas Intermediate, dipped to $49.22 yesterday before recovering to $52.08.

Economist have predicted that oil could decrease to as low as $30 partly due to the slowing Chinese economy, the decision by the Organisation of the Petroleum Exporting Countries (OPEC) not to cut back on production and the US’s reliance on fracking. A short while ago, (11h25) Brent crude had recovered to $50.07.