Brent oil settles below $40/bbl for first time since early 2009
Oil prices have posted significant decreases since June 2014 due to supply and demand imbalances. Global oil supply has been rising at a faster pace than demand due to slower than anticipated global economic growth.
Despite an already oversupplied market, OPEC decided not to curb production at their meeting in Vienna last week. The cartel is trying to push non-OPEC countries to cut production in order to defend their market share.
According to the executive director of the International Energy Agency (IEA), Fatih Birol, oil markets may remain weak in 2016 as an additional supply from Iran will exert further downward pressure on prices while the Chinese economy, which is one of the main oil consumers, continues to exhibit slower than expected growth.
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