Oil Drops to Four Year Low on OPEC Decision

Oil prices hit a four-year low in the wake of the decision by the Opec producers’ cartel not to cut output.

Brent crude touched a new four-year low of $71.12 a barrel early on Friday, before recovering to trade above $73.

The price of Brent had dived by more than $5 a barrel on Thursday after Opec announced no change to its production plans following a meeting in Vienna.

The 12 Opec members decided to maintain production at 30 million barrels per day, as first agreed in December 2011.

The price of US oil fell to $67.75 a barrel – the lowest level since May 2010.

Following the meeting in Vienna, Opec’s secretary general Abdallah Salem el-Badri said the group would not try to bolster prices by cutting output.

“There’s a price decline. That does not mean that we should really rush and do something,” he said.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza