Brent crude oil prices fell once again on Tuesday, this time to a record low of less than $40 a barrel, the lowest since 2009.
The revised price will be helpful in halting inflation and reducing prices of goods, but will have disastrous effects on the oil and commodity market.
The International Energy Agency had issued a report last month citing oil hoarding as a major factor discouraging global demand for oil. This and a glut of oil supply in the market fuelled by the standoff between OPEC and US, are expected to further deteriorate the international oil market. Experts have speculated that prices may fall as low as $20 a barrel.
The poorer members in the OPEC have tried persuading the main body to reduce production to raise prices, but OPEC is intent on protecting its market share against the US shale oil and has refused to discuss the issue till June next year.
In the meantime, oil supply is expected to be further increased as the poorer nations try to balance their income against falling prices.