March futures for WTI (West Texas Intermediate) Crude Oil fell $1.68 to $86.19, the lowest since the end of November 2010.
Saudi Arabia’s oil minister, Ali al-Naimi, said that OPEC (Organistion of the Petroleum Exporting Countries) could raise output plus JP Morgan said in a broker note that additional supply was expected from the North Sea during 2011. The price was also pressurised by a stronger dollar - a strong dollar drives down commodity prices since they are sold in U.S. dollars.
Saudi Arabia’s oil minister, Ali al-Naimi, said that OPEC (Organistion of the Petroleum Exporting Countries) could raise output plus JP Morgan said in a broker note that additional supply was expected from the North Sea during 2011. The price was also pressurised by a stronger dollar - a strong dollar drives down commodity prices since they are sold in U.S. dollars.
The falling oil price probably didn't help matters in the U.K. oil shares together with the poor GDP figures. Though oil could continue to be week for the next few weeks on rising inventories, the outlook is for it to stay in the $85-95 range.
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