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Oil prices fell to $32.62 per barrel on Thursday due to rising US energy stockpiles and a weakening currency in China.

US oil was at its lowest point since December 2008 when it reached $32.40 per barrel during the financial crisis.

Brent crude fell 4.7%, which is a new low in 11-years as the last time it was this low was during April 2004.

Oil prices have been affected by a huge oversupply and near-record outputs, which are currently 70% lower in value than in June 2014 when the downturn first started.

This is not good news for companies and governments who rely on oil revenues and they have suffered as a result of the falling prices. It was also affected by China, who depreciated the yuan on Thursday as this sent regional currencies and stock markets plummeting.

Countries are running out of storage for the amount of oil because it is so heavily oversupplied and the demand for crude usually falls when the US dollar is stronger against currencies of purchasing countries.

The US Department of Energy’s weekly reported showed that US commercial crude inventories dropped from 5.1 million barrels to 482.3 million. However, government data showed a fourth consecutive week of increases as US crude production gained 17,000 barrels a day, taking it to 9.22 million barrels each day.





Reports have stated that the amount of oil in the Gatwick airport area could be about 70% more than expected, an exploration company says. There are around 271 million barrels of oil per square mile (mmbo) in the Weald, UK Oil and Gas (UKOG) estimated. However, the total amount of oil in the field has not been revealed yet.

A past report estimated about 158 mmbo once an exploration had taken place at Horse Hill. Local people were concerned about pollution, according to Friends of the Earth. There are plans put in place by UKOG to drill more exploration wells in the Weald and to assess the potential of the reserves in the area.

In the South of England, oil has been produced onshore for many years. Across the Weald, there are currently around a dozen oil production sites. It is in an area spanning Kent, Sussex, Surrey and Hampshire.

UKOG has suspended their shares temporarily because of the announcement about the Horse Hill oil reserves. Shares were suspended on Aim from 7.30am and other companies who are also involved in the Horse Hill development have suspended. Other companies include Solo Oil, Alba Minerals, Stellar Resources and Doriemus.