14:40 | 16/12/2015 Global Economy
World oil prices tumbled again Monday, dropping to lows not seen since late 2008 and early 2009, when the global recession was deepening.
Pumpjacks bob in a field near Lovington, N.M. World oil prices, which have been declining, fell further Monday when Iran restated its plan to increase crude exports
Global crude prices have been falling for months, with the latest plunge coming as Iran renewed its pledge to boost its crude exports, adding to the glut of oil on the world market.
Oil produced in the United States fell below $35 a barrel in early trading, although the price recovered somewhat in the hours afterward to reach $35.27. Brent crude drilled in the North Sea dropped as much as 3.5 percent, trading at $36.61 at one point, although it also moved a bit higher in later trading.
Even with declining world prices, Iran's deputy oil minister, Amir Hossein Zamaninia, said there was "absolutely no chance" that Tehran would delay its plan to increase its oil exports. The Organization of the Petroleum Exporting Countries, whose 13 member nations produce about 35 percent of the world oil supply, has effectively abandoned oil production quotas, adding to the world oil glut.
The International Energy Agency says it expects the oil glut will extend to at least late 2016, with OPEC showing "renewed determination" to maximize its production.
The cut in the price of crude on the world market has led to the lowest gasoline prices in several years for motorists in the United States. But the steady drop in prices has hindered economies in oil-producing countries dependent on oil revenues, such as Venezuela and Russia. Energy companies have had to scramble to pay bills and fund new operations and sometimes have laid off workers./.