The oil price has fallen by around a quarter since the middle of the summer and the markets are now bracing themselves for low prices to continue. Is this the new normal for oil prices? Slowing growth in Europe and a stronger dollar have helped push the price of light crude oil down about 25 percent since June to about 85 USD a barrel for Brent and around 80 USD for WTI.

Steen Jacoksen, Chief Economist for Saxo bank, explains that while the oil giants are seeing their profits slashed, OPEC still appears to be taking little action. Leading to accusations that the Saudis will tolerate low prices in the hope price pressure will kill off US competitors and allow OPEC to regain market share.

Low oil prices have an impact on the oil producing countries such as Russia and Saudi Arabia but also the resource strong economies like Brazil and Venezuela, which are affected by the low prices. Steen stresses that there are always winners and losers. In this case the winners are the average consumers paying less for gas and electricity, while producers are suffering in what's increasingly looking like a race to the bottom between the US and OPEC.