Oil Price Drops Once Again with Slowdown in Asian Economies; Possibilities of Production Cut Appear Dim
On Monday, during the early morning Asian trading hours, oil prices once again dropped. Weakening economies globally also is cutting down demand. Recently South Korea posted its export data which was the weakest since 2009. The hopes of a coordinated cut in oil production by the key oil producing countries also appear to be a bleak possibility.
On Monday, South Korea posted an 18.5 percent slide in export figures on a year on year basis to $36.7 billion. The level has gone down to the figures that were last noted during the peak of global financial crisis about six years ago.
Asian economies are indicating a slow down with China's dropping factory activity and a slump in the key export-oriented northern Asian countries.
The Brent crude futures dropped 44 cents or more than 1.4 percent compared to its last close and was trading at $35.55 a barrel at 0047 GMT. The U.S. West Texas Intermediate another oil benchmark also slid 32 cents at $33.30 per barrel.
The hopes of Russia discussing oil production cuts with OPEC member countries amid the supply glut do not seem to have very promising prospects. The goal is difficult to realize as goals and strategies of all producers might not match the proposal. Moreover, Iran also an OPEC member which got a sanction lift recently is unwilling to take part in any production cuts.