New York–Global crude futures plunged to fresh lows yesterday just hours ahead of an Organization of the Petroleum Exporting Countries (Opec) meeting today to decide whether to lower oil production levels to alleviate the current glut in global markets, and, more importantly, whether to boost oil production prices.
US benchmark West Texas Intermediate (WTI) for December delivery plunged US$2.97, or 3.8 per cent, to US$74.21, its lowest close since September 17, 2010.Brent crude for delivery in December dived by US$2.46 to US$77.92 a barrel in London. It was the first time since September 2010 that Brent had closed below US$80.
The uncertainty and speculation surrounding Opec's decision have markets on edge. The expectation is that Opec countries won't move to significantly cut oil production.