FX.co ★ Oil dropped below 100 dollars after the earthquake in Japan

The Brent branded oil has continued to fall in price because of the apprehensions that the economic growth will slow down after the earthquake and tsunami in Japan. As a result, the April WTI oil futures have dropped below 100 dollars level on the New York Stock Exchange, and the Brent oil contracts have closely approached to the 110 dollars level during the tender in London. The tsunami and earthquake in Japan have resulted in stoppage of the oil-processing and a number of other factories in Japan, which is the World’s third oil consumer. Reuters notes that the infrastructure damage can limit the oil demand in a foreseeable future. Before, the civil war in Libya had significantly influenced on the oil market: so, the Brent oil had risen in price from 90 to 119 dollars per barrel by the end of February. In order to stabilize the market situation the OPEC (Organization of Petroleum Exporting Countries), which includes Libya, had declared about its willingness to provide the world market with extra oil.