24th August, 2015:

    Oil prices could hit an alarming low today after an eight-week slide capped by markets in Saudi Arabia and Dubai closing about 7 percent lower yesterday.    “(Today) could be the first day that oil closes under $40 since the recession,” said Patrick Dehaan, senior petroleum analyst at Gas Buddy. “Everyone was in near pandemonium that oil prices went under $40 briefly Friday before rebounding. That’s a significant barrier to breach.”    Dehaan said the result will be continuing downward pressure on oil prices, particularly with the summer driving coming to an end. The effect on gas prices could be tempered in the Northeast region, though, by a fire in a Delaware City refinery that occurred just before markets closed Friday.  

 “That definitely bears watching, how that may unfold this week,” Dehaan said of the fire. “It could mean that the Northeast temporarily sees prices go up until we can ascertain the extent of the damage.”    Oil futures have been falling for eight consecutive weeks because of ample supplies of crude and a slowing global economy. Prices have fallen almost 60 percent since this time last year.    The price of U.S. crude closed at $40.45 on Friday, the same day concerns about slowing growth in China drove the U.S. stock market to its biggest drop in nearly four years. 

By Boston Herald