The dramatic crash in oil prices has
returned with a vengeance.


U.S. crude futures dropped as much as 5% on
Thursday, driving prices below $27 for the second
time in recent weeks. Before this year, oil prices
hadn't dipped below $27 since 2003.

The steady decline is creating a widespread
headache for financial markets. It's causing energy
companies' profits to plunge, raising worries about
the prospect of bankruptcies in the oil sector and
spooking investors about global growth. In total,
crude oil has plunged an incredible 75% from its
June 2014 peak of almost $108.


Related: Stocks sink following oil crash


U.S. stock markets followed by declining sharply.
The Dow fell as much as 350 points and the Nasdaq
moved closer to a bear market, or 20% below its
most recent high point.


World markets also suffered. In Asia the Hang Seng
( ) dropped nearly 4% Thursday, while the Nikkei
( ) shed 2.3%. Major indexes in Europe were
1.5% to 3% lower after Sweden's central bank
pushed its key interest rate further into negative
territory at -0.5%.


Related: Fallout: Oil bankruptcies spike 379%


The International Energy Agency said earlier this
week that it expects the global oil glut to grow
throughout the year.

"With the market already awash in oil, it is very hard
to see how oil prices can rise significantly in the
short term," the IEA said in its monthly report.


Related: Don't expect oil prices to rise soon, IEA
warns


Freed from sanctions, Iran ramped up its production
to nearly 3 million barrels a day in January -- an
80,000 increase from December. Iraqi output
reached a record high of 4.35 million barrels a day in
January, and shipments from Saudi Arabia have also
increased.


Many have been hoping that low oil prices would
boost oil demand. But the IEA, which monitors
energy market trends for the world's richest
nations, is predicting a slowdown because of global
economic headwinds.


Related: Janet Yellen says market turmoil and dollar
could hurt economy


Fed Chair Janet Yellen acknowledged Wednesday
that the global economy is facing challenges, but
reiterated the U.S. central bank's plan to gradually
raise interest rates.

Japan's central bank recently introduced negative
interest rates in a bid to produce growth. China's
central bank has spent hundreds of billions to prop
up its currency and the European Central Bank could
soon increase its stimulus program.

http://money.cnn.com/2016/02/11/investing/oil-price-crash/index.html

Lalasticlala do the needful please.

God help us

By the time the budget of yams is finally passed, oil may have dropped to below $20 per barrel. How will the yams budget then be funded?

I had to take this FTC space so one imp doesn't come here screaming FTC on this very sad thread.

Forget oil, let us concentrate on agriculture.

Father, may your children neva go hungry..

Oil down till 2018 ..

Others are putting measures in place to protect their economy and boost it while our government is busy bringing in billions into the budget as Aso Rock house rent. Nepa bill can never replace even a first school leaving cert. Never!