Oil prices sink further to new multi-year lowsDecember 16, 2014 - 10:46 AMT PanARMENIAN.Net - Oil prices sank further to new multi-year lows in Asia Tuesday, Dec 16, with analysts weighing the possible political and economic fallout in oil-producing countries with little respite in the selling, AFP reports. U.S. benchmark West Texas Intermediate for January delivery fell 33 cents to $55.58 while Brent crude for January eased 46 cents to $60.60 in afternoon trade -- both contracts at levels not seen since mid-2009. WTI tumbled $1.90 Monday and Brent dipped 79 cents. Crude prices have plunged roughly 50 percent since June, weighed down by plentiful supplies, the stronger dollar and weak demand arising from the struggling global economy, according to analysts. News that HSBC's index of Chinese manufacturing activity had shown contraction also weighed on prices. "While the U.S. and the world as a whole will benefit from lower oil prices, there is a concern that those who lose out may be hit so hard that the fallout from their problems will outweigh the more diffuse benefits to the winners," research house Capital Economics said in a commentary. The London-based firm said the plummeting prices could force oil producers to cut spending and investment, hurting global demand. It added that the fallout could also be "geopolitical in nature" as "regimes dependent on high oil prices look for distractions from social unrest at home". On Monday, stocks in Argentina dived more than eight percent, dragged by plummeting oil company shares. Focus will now turn to a two-day meeting of the U.S. Federal Reserve that begins later Tuesday, with investors looking for clues about when it plans to raise interest rates. Related links: Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Turkey extends military presence in Azerbaijan The Turkish parliament has adopted a bill submitted by Recep Tayyip Erdogan to extend the mandate of Turkish troops. Russia to begin assessing migrant workers' speaking skills Rosobrnadzor is planning to change the Russian language exam for migrant workers and include an assessment of speaking skills Armenian, Saudi Foreign Minister meet in Riyadh The two commended the positive dynamics of the development of political dialogue between Armenia and Saudi Arabia Pashinyan: Azerbaijan’s proximity shouldn’t worry border residents At the same time, he said that he “does not guarantee [the security of villagers] one hundred percent”. |