Oil prices have hit a near four-year low after Saudi Arabia indicated that it was digging in for a drawn-out price war.
The price of Brent crude fell $2.47 to $87.74 yesterday, its lowest level since December 2010.
The Saudis are refusing to slash production to address rampant global supply and arrest the dramatic slide in prices, which hit $115 as recently as June. Ole Hansen, head of commodity strategy at Saxo Bank, said: “We are in a race to the bottom.”
However, there was relief for motorists as Asda and Sainsbury’s reduced prices at the pump again after making cuts at the end of last month. From today, they will knock up to 2p per litre from diesel and 1p from unleaded.
Saudi Arabia