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Oil Prices Drop To 18-Month Lows

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Last Updated : Dec 17 1997 | 12:00 AM IST

World oil prices slid on Monday to just above 18-month lows on fears of a glut next year.

World benchmark crude Brent blend settled down five cents at $17.26 a barrel on Londons International Petroleum Exchange, having dipped last Thursday to an 18-month low of $17.20

Prices had been in positive territory for much of the day in a typical upward market reaction after a huge 20 percent drop over the past couple of months.

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Brent had also drawn strength from news that two Nigerian oil flow stations had been closed and possibly also from uncertainty about North Sea crude supplies.

But a late sell-off reflected concerns that the market remains overshadowed by growing supply and faltering world oil demand.

The recent downtrend began two months ago from nearly $22 and accelerated this month after the Organisation of the Petroleum Exporting Countries (OPEC) agreed to raise oil output by 10 percent next year. Asian demand growth had already been downgraded and may end up being cut more if China were sucked into the crisis, they said

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First Published: Dec 17 1997 | 12:00 AM IST

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