Oil falls below $70; what it means to Ghana

This is the first time the price is falling below the $70 mark since April.

Oil prices have tumbled after the International Energy Agency cut its forecast for demand

According to the BBC, US oil is at $60.42. This has fallen by more than a fifth since early October, officially putting it in “bear-market” territory.

Stephen Brennock at London brokerage PVM Oil told the BBC that “there is no slowing down the bear train.”

“Instead, the energy complex has extended a route driven by swelling global supplies and a softening demand outlook. There is now a sense of inevitability that the European crude benchmark is poised to revisit the $60s per barrel.”

The price fall is coming after it hit four-year highs at the beginning of October.

In Ghana, this may mean a further reduction of fuel prices by the Oil Marketing Companies (OMC’s).

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The reduction follows a previous increase in prices of petrol and diesel by all 3 major OMCs to GHC 5.21 pesewas per litre in the last pricing window.

With the price fall on the international market, prices may be reduced further.

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