Pessimism is continuing across the oil sector and more global uncertainty affects prices.
For consumers this could be seen as positive news as petrol prices drop to their lowest level in four years but for investors it is a much different story. Brent crude oil fell to a 27-month low at $90.76 (£55.99) earlier in the month, representing a drop of over 20 per cent from the high of $115.06, recorded in June, the Independent reports.
The International Monetary Fund explained that a stalling European economy and emerging market rises could see this trend continue. US shale gas has enjoyed a major boom but this has placed an increased burden on oil prices as they fell substantially since the summer months.
In early October, Saudi Arabia's decision to cut its official selling price resulted in global oil price dropping to a two-year low. Both Brent crude and US light crude were both down with the latter falling below $90 for the first time in 17 months. The Arab nation took the decision to cut its selling price to protect its market share and provide a more competitive pricing market.
While investors will be concerned of when there will be an upturn in oil prices, motorists will be pleased the cost of petrol come tumbling down. According to the AA motoring organisation, the average cost of a litre of petrol fell to 127.13p on Monday (October 6th), providing a significant boost to car owners.
It represented the lowest level since January 2011 when the government increased VAT to 20 per cent. Supermarkets such as Tesco and Sainsbury's slashed 5p per litre off petrol while Asda also introduced price reductions.
Speaking to the news provider, an AA spokesman said: "It may be a false dawn to say low prices will be around for a while but we should enjoy it while it is there. Arguably the forecourts should do more. Where there is an opportunity to increase margin they will."
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