Off the wire
• 1st LD Writethru: Gold down on stronger U.S. dollar  • Czech PM orders immediate security audit  • U.S. dollar mixed against most major currencies  • Exercise reduces heart disease risk in depressed patients: study  • Italy's Lower House passes final version of constitutional reform  • At least 12 killed in riot incidents in Sudan's West Darfur  • Irish economy likely grows by at least 6.2 pct in 2015: PM  • Slovakia, Czech Republic seek self-taxation on meat  • Russian, U.S. FMs to meet "in the near future" over int'l issues  • Austrian chancellor calls for greater repatriation of economic migrants  
You are here: 　 Home

Oil prices plunge amid supply glut

Xinhua, January 12, 2016 Adjust font size:

Oil prices plummeted on Monday as markets expected that supply would surpass demand.

The Organization of the Petroleum Exporting Countries (OPEC) decided against cutting output last December.

The cartel's output accounts for around 40 percent of the global crude output. Traders bet the oil-rich cartel was less likely to cut output now.

Thanks to the U.S. shale oil revolution, American oil production has almost doubled in the past six years. There is no sign that U.S. shale oil producers have started to cut production in face of the plunging prices.

The West Texas Intermediate for February delivery moved down 1.75 dollars to settle at 31.41 dollars a barrel on the New York Mercantile Exchange, while Brent crude for February delivery decreased 2 dollars to close at 31.55 dollars a barrel on the London ICE Futures Exchange. Endit