Crude oil extended it's bearish fall on Friday as global output continues its expansion. Brent, the benchmark grade crude oil, dropped to its four year low, Bloomberg reported.
According to Bloomberg, WTI dropped as much as 2.5 percent to $83.59 a barrel in New York, its lowest mark since July 2012. It closed yesterday more than 20 percent below its June peak, leading many analysts to declare that WTI is in a bear market. Brent is down 23 percent over a similar period and retreated as much as 2.2 percent to $88.11 in London, the lowest since Dec. 1, 2010.
As global demand for crude oil drops, output from OPEC and the U.S. and Russia is expanding leading to the precipitous drop in crude prices. Forbes reported that crude is caught in a "perfect storm" of the near-recession conditions in Europe and lower expectations for the Chinese economy next year.
"There are no trigger points to drive prices up. The Asian market is flooded with oil. There are more and more signs that OPEC doesn't cooperate well these days, and it doesn't look good if OPEC isn't willing to tighten things up," said Thina Saltvedt, an analyst at Oslo-based Nordea Markets to Bloomberg.
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