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Oil prices hit fresh lows

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2015-01-07

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Another oil shock.
Global crude prices plummeted to fresh lows on Wednesday over mounting concerns of oversupply and sluggish global growth.
Benchmark Brent crude temporarily fell below the symbolic threshold of 50 U.S. dollars per barrel for the first time in five and a half-years.
U.S. benchmark West Texas Intermediate also traded at less than 48 dollars a barrel.
Crude prices have slumped almost 10 percent this week alone‚ and have lost more than half their value since mid-2014.
Although the price cut could help growth for some economies a joint analysis by state-run Korean think tanks is not ruling out the possibility of a financial crisis in countries that are heavily reliant on oil exports.
The study added financial troubles in these countries such as Russia and Venezuela could have spillover effects on emerging economies including Korea‚ especially when coupled with a U.S. rate hike down the road.
Kim Min-ji‚ Arirang News. Reporter :

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