Oil extended its collapse to the lowest intraday price since March 2009 on speculation that record U.S. supply may start to strain the country’s storage capacity.
Crude tanks in the US may fill up as drilling-rig cuts fail to slow production this year, the International Energy Agency predicted.
Speculators have cut bullish bets on oil to the lowest level in more than two years while short wagers rise to a record, US Commodity Futures Trading Commission data show. Futures lost as much as 2.8 percent to $43.57 a barrel in New York on Monday, falling a fifth day.
Oil slumped for a fourth week on Friday after government data showed US output and stockpiles expanded to the highest levels in more than three decades, exacerbating a glut that drove prices almost 50% lower last year. The market hasn’t bottomed yet because of the surplus, former Federal Reserve Chairman Alan Greenspan said.
Energy stocks led the FTSE 100 Index lower today after Labour leader Ed Miliband reiterated his election pledge to force a cut in household bills.
He wants Ofgem to have the power to order energy companies to cut their prices by the end of the year if Labour gains office at the general-election.
Blue-chip shares staged a muted recovery yesterday following a £44billion fall in the value of the FTSE 100 Index in the previous session.
The index closed 18.7 points higher at 6,721.5 but it was a small gain after three days of losses culminating in the steepest fall in five months on Tuesday, when it fell by 173 points or 2.5%.
ExxonMobil is set to lower its capex by 12% but said production will rise.
The company said oil and gas output would increase by 2% this year and 3% in each of the following years as it spends about $34million in 2015.
Last year, the oil major produced 4 million barrels oil equivalent per day (boepd) and it plans to increase this to 4.3million boepd in 2017.
Energy research company Wood Mackenzie is preparing for an initial public offering on the stock market which could give it a valuation of up to $3.09.
According to reports, Wood Mac, which is owned by private equity firm Hellman & Friedman, has hired Lazard in recent week to advise on its proposed listing.
Nigeria’s government revenue fell 15% in January as falling oil prices eroded the income of Africa’s biggest crude producer.
Revenue fell to 416.1 billion naira ($2.1 billion) in January compared with 490 billion naira a month earlier, Accountant-General Jonah Otunla said.
The volume of oil exports declined 33 percent in November and December, resulting in $159.88 million of lost revenue, Otunla said.
Oil headed for the biggest weekly advance since February 2011 amid the highest trading volatility in almost six years.
Futures rose for a second day in New York and have gained 7.1% this week. The CBOE Crude Oil Volatility Index, which measures price fluctuations using options of the US Oil Fund, ended at 63.14 on Thursday, the most since April 2009.
The United Steelworkers union, which went on strike at nine US oil plants on February 1, plans to resume bargaining with Royal Dutch Shell Plc next week after rejecting a sixth offer for a new labour contract for 30,000 workers.
A late rally led by energy companies pushed US stock indexes higher yesterday after the market flitted between small gains and losses for most of the day.
Stocks opened higher, then moved down, then back up as investors seemed unable to make up their minds. A pair of weak reports on the US economy fed the uncertainty.
But oil prices ended up surging for a third straight day, and stocks of big producers jumped. All 10 industry sectors in the Standard and Poor’s 500 index rose.
Exxon Mobil rose 2.5% after reporting better-than-expected earnings. Chevron jumped 3.4%. Both companies are members of the Dow Jones industrial average.
Weaker-than-expected profits from Royal Dutch Shell triggered a sell off for oil stocks and left the FTSE 100 Index sharply lower today.
The oil giant’s shares were down by more than 3% - off 77.5p to 2170.5p - despite a 12% rise in underlying profits to $3.26 billion (£2.15 billion) for the final quarter of 2014.
The company, which has been hit by a sharp fall in Brent crude prices since last summer, also said it planned to cut spending by 15 billion US dollars (£9.9 billion) over the next three years.
Financial results from a fourth quarter that saw the collapse of the crude market will provide a window into how the world’s biggest oil companies are adjusting to a new reality of slowing growth and low prices.
Oil that topped $115 a barrel as recently as June has been trading below $50 a barrel since the first week of the year, portending a bleak 2015 for the world’s five so-called supermajors -- Exxon Mobil Corp., Royal Dutch Shell Plc, Chevron Corp., Total SA and BP Plc.
The companies, whose businesses combine oil and natural gas exploration with refining and chemical manufacturing, have historically been among the most resilient players during down cycles.
This could be the oil bust that breaks that pattern.
Oil bulls finally caught a break as prices capped their first weekly advance since November.
Hedge funds raised their net-long position in West Texas Intermediate crude by 12% in the week ended January 13, US Commodity Futures Trading Commission data show.
Long wagers jumped the most since March 2011.
WTI climbed 6.1% in the three days following the report period, after dropping more than 50 percent since June.
BP shares were sharply higher today after a judge in the United States ruled that the Gulf of Mexico oil spill was smaller than government estimates.
District judge Carl Barbier said that 3.19 million barrels were discharged into the Gulf after the rig explosion at BP’s Macondo well, more than the 2.4 million-barrel figure BP had argued for but less than the US government’s estimate of about 4.2 million. The latter figure could have meant $18 billion (£12 billion) in maximum penalties under the Clean Water Act.
The FTSE 100 Index posted healthy gains today as a revival in supermarket shares diverted attention away from continued trouble for oil stocks.
Oil stocks were on the back foot again after the price of Brent crude declined to as low as $45 a barrel.
The Russian rouble has fallen further under continuing pressure from low oil prices.
The currency was down nearly 3% in morning trading in Moscow, floating around 65 roubles per dollar.
Brent crude was being traded at below $50 a barrel for the first time since 2009 today as the rout in global oil prices continued.
The industry benchmark has slumped from $116 a barrel in June,driven by a glut in supply and shrinking demand due to fears over the outlook for world economic growth.
Brent was down by another 2% in trading today, putting more pressure on the shares of FTSE 100 Index heavyweights BP and Royal Dutch Shell.
The FTSE 100 Index headed lower for a third session in a row today in a slump driven by sliding oil prices and fears of a Greek exit from the euro.
London’s leading share index had lost 2%, or 130.6 points, in the previous session and was again lower, by about 0.8%, to 6366, as the markets showed little sign of sparking into life after a dismal start so far to 2015.
Oil major BP could face a sizable fourth quarter loss on its Rosneft share caused by the 47% slide in the ruble over the past three months.
According to reports, city analysts have had forecast losses to be as much as $750million.
BP currently has a 19.75% shareholding in the Russian energy company which it acquired in 2013.
A weakening oil price meant BP and Royal Dutch Shell remained under pressure despite a steady start to the year for the FTSE 100 Index.
BP shares topped the fallers board with a decline of 1.5% as the price of Brent crude slipped to $56 a barrel due to ongoing fears of a supply glut.
Brent and US crude oil prices both hit five year lows yesterday, before rebounding slightly, and experts expect them to go lower still.
Benchmark Brent was down by 36 cents a barrel to $57.52, putting it on track for its second weakest month since the global financial crisis of 2008, while US crude was off 3 cents at $53.57 by late afternoon UK-time.
Richard Hastings, a macro strategist at American investment bank Global Hunter Securities said US crude would likely break below $50 in the next few trading days.
A pledge by US policymakers that they will be patient in their approach to raising interest rates helped ease global market jitters today.
The latest meeting of the US Federal Reserve highlighted optimism over the country’s economic performance but appeared to rule out a rates rise in the first quarter of the year.
The message lifted the Dow Jones Industrial Average on Wall Street by more than 1.5% and helped the FTSE 100 Index improve 35.3 points to 6371.9 after a strong session for Asian markets overnight.
Volatility for world markets continued today as the FTSE 100 Index put back a large chunk of the 2.5% rise seen in its previous session.
Oil prices steadied at 60 US dollars for a barrel of Brent crude but this was not enough to prevent another weak session in Europe as confidence was hit by the continued financial crisis in Russia.
The FTSE 100 Index stood 45 points lower at 6287.1, having rebounded by 2.5% or 149 points at the end of choppy trading yesterday.
A volatile session saw the FTSE 100 Index fluctuate between positive and negative territory today as the fall-out from falling oil prices continued.
Brent crude dipped below 60 US dollars a barrel for the first time since 2009, meaning the energy industry benchmark is now down by about 50% since the summer amid concerns about weakening demand and oversupply.
The slump has been worst felt in Russia, where a sudden hike in interest rates from 10.5% to 17% overnight failed to prevent a fresh decline in the value of the rouble, which stood at a new record low.
A better session for energy stocks today helped the FTSE 100 Index steady after its worst week of trading since August 2011.
Investors found some value in a number of heavyweight oil companies as the price of Brent crude stabilised at around $63 a barrel.
Energy stocks have received some respite after their battering yesterday in the wake of the latest slide in the price of oil.
Brent crude held firm at just over 64 US dollars a barrel, having fallen sharply on Wednesday when a monthly report by industry cartel Opec said demand next year was expected to fall to its lowest level in a decade.
The FTSE 100 Index, which opened the week at 6742, dipped below 6500 at one stage before recovering by 10.8 points to 6510.7 amid lacklustre trading.
Fears over Chinese demand combined with another decline in oil prices to trigger a poor start to the week for European markets.
A slump in export growth in the world’s second largest economy spooked investors, particularly as imports also contracted rather than expanded.
