Brent crude prices fall below $30 for the first time since April 2004 and could make fuel cheaper than water
Petrol will soon cost less than bottled water as the relentless decline in oil prices sends fuel down to 86p a litre, it has been claimed.
Brent crude fell to below $30 a barrel for the first time since 2004 on Wednesday evening – and has fallen by more 73pc since reaching highs of $115 last summer.
Motoring group RAC said pump prices now could fall back to levels last seen in the aftermath of the financial crisis in 2009, if the commodity plunges to as low as $10, a forecast made by Standard Chartered bank earlier this week.
At 86p, petrol would be cheaper than most supermarket varieties of bottled water, said Simon Williams, spokesman for RAC.
“Motorists can expect some really low fuel prices in 2016,” said Mr Williams.
Brent crude dropped to $29.96 in intraday trading after prices temporarily rallied on the news that Russia could pull back on its record levels of production.
Russian oil output hit a post-Soviet era high in 2015, according to the International Energy Agency. Saudi Arabia has urged Moscow – which is not a member of Opec – to pare back on production to help rebalance the world’s oversupplied market.
“The current oil prices may lead to quite hard and fast closures of certain oil producers in coming months,” said deputy Russian finance minister Maxis Oreshkin, in a tentative sign that doggedly low prices were beginning hurt the country.
Full article: Oil price crash means petrol could become cheaper than bottled water (The Telegraph)