World oil prices fell through the floor to their lowest ever levels in 12 years earlier this week as the Peoples Republic of China’s market turmoil heightened worries about the economic condition of the world’s second-largest consumer of crude oil.
US benchmark West Texas Intermediate for February delivery fell 70 cents, or 2.1 percent, to finish $33.27 a barrel on the New York Stock Exchange. WTI had hit a low of $32.10 in early European trading, a level last seen in December 2003.
In London, European benchmark Brent North Sea crude oil for February fell 48 cents (1.4 percent) to $33.75 a barrel. Earlier Brent had fallen to $32.16, its lowest level since April 2004.
However, it is pertinent to note that even as oil prices are falling through the floor, the Pakistani government refuses to lower prices effectively minting money from the poor masses.
Prices have fallen sharply since the beginning of the New Year on China worries but also in part due to fears that the ongoing row between key producers Iran and Saudi Arabia would dim prospects for output cuts.
The Organization of the Petroleum Exporting Countries, (OPEC) which includes those countries, effectively dropped output limits in early December, despite the global oversupply.
