Oil prices 'could fall further'

24/10/2008

Oil prices could fall further despite a supply cut by the Organisation of the Petroleum Exporting Countries (Opec), one expert has claimed.

Talking to Bloomberg, Mark Waggoner claimed that unless they restrict global supply by two million barrels of oil per day or more, prices will continue to slide.

Opec has called an emergency meeting to be held today (October 24th) in Vienna to address the issue of tumbling oil prices, which has already had a knock-on effect for DERV and petrol-users.

Yesterday, major supermarket resellers announced cuts to the price of petrol to reflect the recent reduction in oil costs.

Mr Waggoner insisted that if the group decides against making a large supply cut, oil prices will soon hit $58 (£36.46) a barrel.

Such a fall could well soon have an impact on derivatives including DERV, red diesel and heating oil.

Last month, Opec announced planned supply-side reductions of 500,000 barrels a day, although the move failed to raise oil prices.