Crude prices slump as Opec targets US shale

London

CRUDE oil prices hit four-year lows last week after Opec held output levels despite global oversupply, in a move perceived by some analysts as an attack on booming US shale energy. Heavy falls in the oil market also dragged down many other commodities, despite holiday-shortened trade due to Thanksgiving on Thursday in the United States.

"With crude oil plunging, commodities generally have come under pressure with general portfolio liquidation being cited as a factor behind the move," said Standard Bank analyst Leon West gate. "Other knock-on effects in terms of energy costs and lower production costs have also emerged."