Brent crude drops below $97
The price of Brent crude declined below $97 a barrel today due to excess supply and a strong US dollar, which outweighed concerns over growing political tensions in the Middle East.
Weak demand, plentiful supply drive recent decline in oil prices reports the EIA.
North Sea Brent crude oil prices have remained under the symbolic $100/barrel level since September 5, falling to $94.13/barrel this afternoon, the lowest level in more than two years.
Prices have declined almost $21 (18%) from the 2014 daily peak of $115/barrel on June 19. Prior to this decline, average monthly Brent spot prices traded within a narrow $5/barrel band from $107 to $112 per barrel for 13 consecutive months through July 2014.
During this time of record-low price volatility, substantial disruptions to OPEC supply were offset by increases in U.S. production and weaker-than-expected non-U.S. global demand. More recently however, the return of Libyan oil production to the market, combined with the weakening outlook for global oil demand, has put downward pressure on prices.
OPEC daily basket price stood at $94.18 a barrel Wednesday, 24 September 2014