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NEW YORK: The global oil prices have maintained a downward trend, crashing to $48 per barrel, well below a record high of $115 per barrel just less than a year ago. Prices in the global oil market on slumped for a fourth straight session, spooking worries about a supply glut pressured crude prices, which have fallen to the lowest since 2009.
According to Phillip Streible, senior market strategist at RJO Futures in Chicago “I think the likelihood of seeing $46 to $45 is quite likely. People, I think, are further understanding that the U.S. is becoming a powerhouse in creating crude oil and that’s not going to change anytime soon.”
The sell-off in oil began six months ago on concerns of an oversupply of high quality U.S. shale crude. It accelerated after a meeting of the Organization of Petroleum Exporting Countries in November, when Saudi Arabia ruled out production cuts as a means of boosting prices.
Saudi Arabia’s King Abdullah said in a speech read for him on that the country would deal with the challenge posed by lower oil prices “with a firm will,” giving no signs the number one crude exporter will cut supplies.
