Oil prices fall below US$30 per barrel

For the first time in 12 years, crude oil prices fall below US$30 per barrel.

New York’s benchmark West Texas Intermediate (WTI) fell to US$29.93 per barrel, a price last seen in December 2003. London’s Brent North Sea crude ended at a similar prices at US$30.86 per barrel.

Experts fear that oil prices may drop to US$20 per barrel. Nigerian petroleum resources minister Emmanuel Ibe Kachikwu, said he expects an extraordinary meeting of the oil cartel in early March to discuss the declining crude prices.

We did say that if it hits the $35 (per barrel level), we will begin to look (at)… an extraordinary meeting,” Kachikwu said to AFP at the Gulf Intelligence UAE Energy Forum. Oil accounts for 90% of Nigeria’s export earnings and 70% of the country’s revenue.

However, experts are doubtful if such a talk will happen since they say that Saudi Arabia and United Arab Emirates aim to run down the competition, like the United States, to control the prices.

“Nigeria’s call for an early OPEC meeting would be a constructive factor if it were to lead to an actual meeting and shift in policy,” said Tim Evans to AFP. “But it’s far from clear that Saudi Arabia and its nearest allies like the UAE are open to even talking about it.”