Click to play videoNew Delhi: In a huge relief to many, oil prices are falling sharply in the global market. Crude has retreated as Hurricane Dolly spared key oil installations in the Gulf of Mexico.
Increasing oil supply in the United States and strengthening dollar are the other factors influencing the current tumble.
Crude oil has fallen nearly 16 per cent in the last 10 trading sessions.
It is currently trading at a seven-week low of $125 per barrel, a fall of nearly $4 per barrel, after oil inventories fall by larger-than-expected amount. A barrel of light, sweet crude fell $1.56 to $126.86 on New York Mercantile Exchange. Gasoline supplies have increased by 2.85 million barrels.
This drop is expected to benefit a wide spectrum of companies, including airlines, manufacturers and even retailers. It will also help distract investors from some disappointing earnings delivered this week especially from struggling banks and brokerages
Congress is pursuing crude oil at $80 per barrel with trading limits and disclosure rules.
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