All the latest economic and financial news, as the rout in the oil price continues. Latest: Brent falls below $50/barrelGeorge Osborne: Firms must pass savings onto consumers Chart: How Brent crude has halved since the summerComing up... the latest eurozone inflation data 9.00am GMT In the City, the slide in the oil price is hurting the energy sector.Weir Group, the Glasgow-based engineering firm which serves the industry, is leading the FTSE 100 fallers, down 1%. Exploration firms Tullow Oil and BG Group are both down 0.8%. 8.39am GMT UK motorists should hopefully see the benefits of the lower oil price on the forecourt soon. Although, as consumer journalist Paul Lewis points out, only a small proportion of the petrol price actually pays for the hydrocarbons. Brent crude falls below $50 a barrel. That is 159 litres. So oil is about 20p a litre. Unleaded average 111p of which 76.45p is duty and VAT 8.32am GMT US crude oil is also being driven lower -- down another 1.5% below the $47/barrel mark. 8.27am GMT The speed of the slump in the oil price mirrors the selloff in autumn 2008, when Brent fell from around $100/barrel to just $36/barrel after the collapse of Lehman Brothers.The low prices are a result of high output clashing with sluggish demand, especially in Europe, which is still struggling with its debt crisis, and in Asia, where China’s growth is slowing and Japan is battling recession.On the demand side, output from North American shale producers remains high, although drilling is slowing, and producer club OPEC has so far resisted calls to cut production in support of prices. 8.04am GMT The slump in the oil price is undoubtedly good news for the global economy, argues Boris Johnson’s economic advisor, Dr Gerald Lyons:There seems to be lot of debate about weak oil prices. As these reflect ample supply not collapsing demand the net effect is good for world. 8.03am GMT Wow!!! Bloomberg breaking news: Brent Crude Falls Below $50 Per Barrel for First Time Since May 2009 8.01am GMT Brent Crude has just fallen below the $50/barrel mark for the first time in five and a half-years.The benchmark oil price has shed another 2% this morning, as the oil price continues to be pushed down by global economic growth fears and excess supplies.#Brent crude falls below $50/BBL for 1st time since May 2009“I would not be surprised if the price falls to as low as around $20... It is purely due to supply and demand. There is a ceiling for oil because high energy prices dampen economic growth.”Oil price was $53 pbl last night - lowest in 5yrs. Vital this is passed on to families at petrol pumps, through utility bills and air fares 7.55am GMT The fall in the oil price is hurting Russia’s currency -- the rouble has lost another 0.5% this morning to 63.5 roubles to the US dollar.#Russia Ruble continues to drop in sync w/ #oil. Now 63.70 per Dollar as Brent has hit fresh 5.5yr low at $50.22/bbl. pic.twitter.com/U6b23fdsiM 7.47am GMT Brent crude oil is weakening further, and is now just a few cents above $50/barrel.Brent about to break through $50 a barrel pic.twitter.com/FsgD9fHvkTTwitter, get ready for the " #Brent #Crude #Oil hits $50" storm... just got within 3 cents... 7.46am GMT This chart shows how the cost of Brent crude has halved since last summer, down to the brink of $50. 7.30am GMT Today’s selloff means Brent crude could fall below $50 today, suggests Bloomberg’s Andrew Barden:Here's an #oil chart to start your day. Will #Brent follow #WTI south of $50 today? #FreeFall pic.twitter.com/GMsRjncjej 7.28am GMT The oil price has continued to fall overnight, pushing Brent crude down towards the $50 mark for the first time since the last global downturn in 2009.Brent has shed another 1.6% so far today, or $0.87 per barrel, to just $50.22. That’s a new five and a half-year low.Oil prices continue to drop, Brent just shy of $50/bbl. Petrodollar drought is risk for mkts. http://t.co/ez9mmBC1Tz pic.twitter.com/obeU2G7gJuHow $50 oil changes almost everything http://t.co/N924K3qWx9 pic.twitter.com/AR0XBBh569 7.24am GMT Good morning, and welcome to our rolling coverage of events across the world economy, the financial markets, the eurozone and business.Today could be D-Day for Europe’s struggling economy. D for Deflation, that is.The oligarchs are high on our agenda,” George Stathakis, the shadow development minister and Syriza’s senior economic spokesperson said in an interview with the Financial Times. “They will be a priority for action.”Wednesday's FT: Greek hard-left party pledges to loosen economic grip of ‘oligarchs’ #tomorrowspaperstoday pic.twitter.com/QfScnnHaRXSainsbury's l4l sales down 1.7% over Christmas - not as bad as feared - so taken share from or are the major grocers fighting back? Continue reading...
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