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."

Opec opted on Thursday to keep its collective production ceiling at 30 million barrels per day, where it has stood for three years. The no-change decision sent London Brent oil collapsing on Friday, sinking below US$7…