Oil prices hit six-year lows as global commodities rout continues
As global equities continue to plummet, commodities are doing the same. After Bloomberg's commodity index sank to a 16-year low overnight, oil prices continued their rout this morning, with both WTI and Brent crude falling to six-and-a-half year lows.
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Brent crude was down 3.65 per cent at $43.80 in morning trading, while WTI crude, the US benchmark, sank back below $40 to $39.04.
Oil has been hit in recent months by a global glut in supply. That was compounded as relations improved between Western economies and Iran, one of the world's largest oil producers. Yesterday the UK reopened its embassy in the nation, while representatives of institutions including the British Bankers Association and the Institute of Directors are currently visiting Tehran alongside foreign secretary Philip Hammon in an effort to build the UK's relationship with the country.
The news came as Fairfield Energy, which was set up a decade ago to reuse cast-off oil platforms, moved into decommissioning market. The Sunday Times reported yesterday that the company, which has raised $600m since it was founded in 2005 and until earlier this year counted former BP chief executive Lord Browne amount its board members, has now changed its strategy to focus on stripping down decommissioned oil platforms
But despite the continuing crisis in oil, miners were among the worst casualties of today's selloffs. BHP Billiton fell 5.52 per cent in mid-morning trading, while Anglo American fell 5.46 per cent and Glencore fell 5.17 per cent. Fresnillo, Rio Tinto and Antofagasta were also among the biggest fallers.