Oil price could fall further in 2016

Jan 03, 2016

Oil is more than a third cheaper at the start of this year than last, with the price of a barrel of Brent crude, the international benchmark, having fallen to $37.28 (£25.50) from $57.33 a year ago.

Analysts believe oil could fall even further in 2016 since Iran will begin pumping now that sanctions over its nuclear development programme are being lifted.

Iran has said that it intends to return to full capacity as an oil producer as quickly as possible.

Nevertheless, the latest official figures for the price of petrol in the UK show that it remains above £1 a litre on average, despite supermarkets slashing the price to 99p in recent weeks.

The official figures show a litre of unleaded fuel costing 102.3p, with a litre of diesel coming in at 107.04p.

Source: This is Money