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Doomsday warning as predictions of $10-a-barrel oil grow

UAE energy minister Suhail bin Mohammed al-Mazroui said Opec’s decision to maintain production and crowd out rivals was still bearing dividends, as the UAE dismissed the prospect of an emergency gathering of OPEC memebers called for by Nigeria.

Oil prices fell to fresh lows below $30-a-barrel Tuesday amid warnings the price rout could hit US$10 a barrel and bring down gas prices to levels last seen in 2009.

Investment bank Standard Chartered became the latest big name to downgrade its oil outlook joining the likes of Goldman Sachs, Royal Bank of Scotland and Morgan Stanley in making ultra-bearish calls as prices have collapsed by 15 per cent this year.

Brent crude slipped to a new 12-year low of US$30.41 a barrel Tuesday, while West Texas Intermediate — the U.S. benchmark — fell as low as US$29.93 on an intraday basis, a level not seen since December 2003. Analysts warned that the oil market remained fundamentally out of balance as record over-supply and stagnant demand weighed on traders.

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