Oil prices rebound slightly after hitting 12-year low
Analysts warned of further pressure on the commodity after prices had sunk to $30 a barrel.
Oil prices rebounded in Asia on Wednesday after hitting a 12-year low and falling below $30 a barrel. United States benchmark West Texas Intermediate for delivery in February fell to $29.93 on Tuesday, before rising 38 cents on Wednesday. European benchmark Brent rose 26 cents to $31.12. However, analysts warned of further pressure on the commodity.
Reports have said that constant oversupply has led to prices being battered for around two years, while the recent slowdown in China’s economy has also been attributed for the fall.
Nigeria, a member of the Organization of Petroleum Exporting Companies, called for an emergency meeting on the sinking prices on Tuesday. Poorer members of OPEC asked the cartel to cut oil production so that prices stabilise, but more influential members, led by Saudi Arabia, have negated the move.
Reports have said that British Petroleum will also be cutting 4,000 jobs, after its European rival Royal Dutch Shell sacked 7,500 people last year.