Oil prices drop

The price of oil has fallen to less than $100 a barrel for the first time in 16 months.

The drop to $99.95 came after data from China added to fears that the world’s second largest economy could be heading for economic slowdown.

Prices have been dipping over the last three days, hitting $99.75 at one point.

This has surprised some observers as oil prices usually rise in times of geopolitical tensions. The Middle East, in particular, is beset with increasing hostilities and there is also uncertainty over the question of Scottish independence.

Petrol prices in the UK have been driven down to their lowest in three and a half years due to a supermarket price war. Will we also be so lucky in Portugal?

A survey from news agency Reuters, however, has poured cold water on the new lower prices when it found that the average oil price needed for the budgets of the key oil-producing nations is $106.

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