Brent crude oil price falls to fresh six-year low

The price of Brent crude oil has fallen again taking it to a fresh six-year low.

The price of a barrel of the North Sea benchmark dropped by 5% to $47.75, its lowest level since early 2009.

US crude oil was also at its lowest level since that time, down by 4.1% to $46.33 a barrel.

The cost of petrol in the UK is being cut in response to the recent falls, with one Birmingham garage selling petrol at 99p a litre.

Asda said on Monday it would be cutting its forecourt price by a further 2p a litre to 103.7p.

Diesel will be 110.7p.

Meanwhile, a leading investment house drastically cut its three-month forecast for Brent crude from $80 a barrel to $42.

Goldman Sachs said the price would stay close to $40 for most of the first half of this year, at which price the firm said investment in the US shale gas industry would be held up.

The oil price has now fallen by more than half since June, when the price stood at $110 per barrel.

Production from North American shale companies has increased the supply of oil and gas, helping to depress prices.

Also undermining the price of oil are slowing global economic demand and a rising dollar against a range of other currencies.

The latter can flatter the oil price, which nonetheless can remain the same price in a local currency that buys fewer dollars.

Source-BBC