The price of Brent crude oil has fallen below $60/barrel, which is the weakest price for oil in over a year.

Brent oil fell to lows of $59.09/barrel during trade on Friday and further volatility in oil markets looks certain in the weeks ahead.

Crash

Oil prices have crashed almost 30% in recent weeks, having peaked at $85/barrel in early October.

The price of oil is dropping rapidly amid mounting market concerns that the world is facing into a glut of crude oil supply, as Saudi Arabia and other members of the oil cartel OPEC have continued to pump oil in recent months.

The oil cartel is due to meet in Vienna in early December to discuss whether countries should curb production in a bid to force prices up. Falling oil prices will hit the economic spending power of oil-producing countries such as in the Middle East, which are critically important to global dairy markets.

Oil-producing countries account for almost one third (30%) of all dairy imports in the world.