Oil prices drop by 4%
1,442 views · Published 18 December 2018 · 3:58 · Indexed 31 October 2026
Channel: SABC News · 2018 · News & Politics
Our number of the day is 4%. Well, oil prices dropped 4 % today amid over-supply worries and equities sell-off. US crude oil dropped $2.04 to a low of $47.84. The US has surpassed Russia and Saudi Arabia as the world's biggest oil producer, with total crude output climbing to a record 11.7-million barrels per day. With prices falling, unprofitable shale producers will eventually stop operating and cut supply. Oil production from seven major US shale basins is, expected to climb to more than 8-million barrels per day by the year-end. While Russian oil output hit a record 11.42-million barrels per day this month. Oil cartel Opec and other oil producers agreed this month to curb production by 1.2-million barrels per day, in an attempt to drain tanks and boost prices. But the cuts won't happen until next month. This is good news for South African motorists as they can expect further petrol price cuts. According to calculations now the average over recovery is over R1 per litre of petrol. This means that another price drop of around R1 is on the cards. For more news, visit: sabcnews.com
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