Roller Coaster Decline of Oil set new low since 2009

Oil is new lowest since 2009

International oil prices broke through $50 (U.S.) a barrel for the first time since the height of the financial crisis. While it later regained ground, it nonetheless underscored the turmoil in global markets and set a new threshold for the collapse in crude prices.

Brent crude, the effective global benchmark, fell about 2 per cent in early Wednesday morning trading, taking it to its lowest level since May, 2009, when most of the industrialized world was firmly in recession. West Texas Intermediate, the main North American benchmark, which typically trades at a discount to Brent, went below $50 in late December and was trading earlier Wednesday at $47.50.

Prices for both Brent and WTI crude later rebounded to $51.15 and $48.28, respectively, as of 6:17 a.m. ET.

The ruble, which is considered a petro-currency much like the Canadian dollar, lost about 0.5 per cent this morning to trade at 63.5 rubles to the U.S. dollar.
Fears of Oil sector also increased with Saudi`s new promise to sale it to its lowest i.e. $20.

Oil reached a high of $147 a barrel in early 2008, just before the financial crisis.

Source: The Globe and Mail.