Supply glut pushes oil prices to 11-year low

Oil prices have continued to plunge, now reaching pre-2004 levels and going below the prices fetched during the 2008 recession.

The price of Brent crude reached $36.05 per barrel - its lowest since July 2004 - before climbing slightly to $36.56, a pale comparison to the $115 per barrel price it  fetched in June 2014.

Prices have been driven down by a glut in oil supplies across the globe, for which suppliers have so far been unable to conclude selling agreements.

Saudi Arabia and Iran both have both ignored calls for restraint in their oil production, instead insisting on continuing their oil extraction operations. The two oil producing countries’ battle for market share has contributed to record oil inventories and the slashing of oil prices by half over the past 18 months.

Market experts are not expecting the downward trend to be reversed anytime soon, as oversupply continues with with more US and Russian oil reaching the markets. The situation will be exacerbated in 2016, when sanctions on the supply of oil from Iran are expected to be lifted..

Abroad, consumers have enjoyed the freefalling price of fuel at the pump with several UK supermarkets selling petrol at under £1 per litre, but Malta remains one of the countries with the highest prices for fuel in Europe..