The latest attempt by Saudi Arabia to kill off the threat from US shale oil has sent oil prices slumping to their lowest level since the depths of the global recession almost seven years ago.
A barrel of benchmark Brent crude was changing hands at below $42 a barrel after the oil cartel Opec – heavily influenced by Saudi Arabia – decided late last week to continue flooding the global market with cheap oil.
With global demand weak, traders fear that Opec’s refusal to cut production despite the financial pain it is causing its members’ economies will lead to an ever-deeper world glut of crude.
Brent stood at $43 a barrel when business began in the City on Monday and fell steadily before receiving a fresh downward push when trading opened in New York.
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