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| Brent crude oil price dips below $50 a barrel | Brent crude oil price dips below $50 a barrel |
| (35 minutes later) | |
| The price of Brent crude oil has fallen below $50 a barrel for the first time since May 2009. | The price of Brent crude oil has fallen below $50 a barrel for the first time since May 2009. |
| It fell more than a dollar to $49.92 a barrel in early trading on Wednesday before edging back above the $50 mark. | It fell more than a dollar to $49.92 a barrel in early trading on Wednesday before edging back above the $50 mark. |
| Slowing global growth and increased supply of oil and gas have pushed prices sharply lower in recent weeks. | Slowing global growth and increased supply of oil and gas have pushed prices sharply lower in recent weeks. |
| The price of oil traded in the United States, known as West Texas Intermediate crude, has already fallen below $50. | The price of oil traded in the United States, known as West Texas Intermediate crude, has already fallen below $50. |
| Many observers expect the price of oil to fall further as North American shale producers continue to supply increasing quantities of oil and gas, and the oil-producing group Opec resists calls for cuts in production to support prices. | Many observers expect the price of oil to fall further as North American shale producers continue to supply increasing quantities of oil and gas, and the oil-producing group Opec resists calls for cuts in production to support prices. |
| "With no sign that Opec will do anything about over-production, it seems likely that we could well see further declines towards $40 in the coming weeks," said CMC Markets analyst Michael Hewson. | "With no sign that Opec will do anything about over-production, it seems likely that we could well see further declines towards $40 in the coming weeks," said CMC Markets analyst Michael Hewson. |
| Producers suffer | |
| Whilst many consumers and businesses welcome a drop in the cost of fuel, oil producing countries including Russia and Venezuela have been hit as the price of their main export falls. | Whilst many consumers and businesses welcome a drop in the cost of fuel, oil producing countries including Russia and Venezuela have been hit as the price of their main export falls. |
| The oil price has now fallen by more than half since June when the price stood at $110 per barrel. | |
| "All the net exporters of oil are the ones that are suffering at the moment," said Iain Armstrong, oil market analyst at investment management firm Brewin Dolphin. | |
| "Unless you're lucky enough to be tied to the dollar, your currency is going to be in big trouble, i.e. just like Russia." | |
| Pump price | |
| In the UK politicians have called for more of the fall in oil prices to be passed on to consumers. | |
| On Monday, Chancellor George Osborne tweeted that it was "vital this is passed on to families at petrol pumps, through utility bills and air fares". | On Monday, Chancellor George Osborne tweeted that it was "vital this is passed on to families at petrol pumps, through utility bills and air fares". |
| Speaking BBC Radio 5 Live Sainsbury's chief executive, Mike Coupe said fuel prices could eventually fall below a pound a litre: | |
| "We have certainly seen prices chased down, mainly by the supermarkets," he said. | |
| "You could feasibly see fuel prices fall below the £1 barrier." | |
| All the major supermarkets have reduced fuel prices this week. |