Oil price falls to new level in five years

Oil prices fell on Monday to its lowest level in five years, weighed down by the OPEC decision last week not to cut production, and sank deeper into Russian ruble has lost a quarter of its value in just one month .

Brent crude for January delivery was trading Monday morning at $ 67.53 a barrel, the lowest since October 2009, but then recovered to $ 72.54.

Meanwhile the barrel of “light sweet crude” (WTI) gained $ 2.85 on the New York Mercantile Exchange (Nymex) to $ 69. In electronic exchanges before it came down to $ 63.72, lowest level since July 2009.

Gathered last Thursday in Vienna, the ministers of the OPEC (OPEC) decided to keep at 30 million barrels per day production levels over the next six months and resigned to reduce supply to curb price collapse, as advocated countries like Venezuela.

Crude oil prices have fallen more than 35% since June pasado.Los OPEC members provide around a third of world oil production. Revenues from Russia, which does not belong to OPEC depend 50% on oil.

This situation, coupled with economic sanctions imposed by the West to Moscow for his role in the conflict in Ukraine, and massive capital flight has caused a collapse of the Russian currency.

The ruble lost this Monday morning 8% of its value in a few hours. Only November, the Russian currency has lost 25% against the euro and 27% against the dollar. Since early this year, the loss was 47% against the single European currency and nearly two thirds (63%) against the greenback.

According to the Russian Central Bank, the country’s growth could fall to around zero in early 2015.
Russia is not the only injured by falling crude oil prices, which also affect several OPEC members, including Venezuela, whose economy is exceptionally dependent on oil.

How far will fall oil?

“Operators who try to analyze what the consequences of the decision of OPEC, wondering how far he can get off oil,” said Carl Larry of Oil Outlooks and Opinion on Monday.

For example, the price of oil has fallen in New York in November, up 18%, the biggest monthly drop since December 2008. “Not only are concerned about the growing supply of crude oil (in the world market) but also parallel, weak demand, “says Phil Flynn of Price Futures Group.

One example is that in China, the second largest consumer of black gold, manufacturing activity has slowed in November and recorded the weakest growth for eight months.

And in the eurozone, the manufacturing sector remains stagnant due to weak zero or even negative growth in the three major economies of the region, Germany, France, and Italy, which takes 13 consecutive quarters without growing.