The crude oil prices dropped to $60 as signs of a crisis of glut which looms ahead thanks to the producers.
Crude oil prices took a dive to reach even lower than $60 per barrel recently. This is the first time such an extreme example of an all-time low in prices has been detected in half a decade. Crude oil prices have left the producers in a conundrum since they are unable to deal with the glut that has automatically been produced as a result of the economic changes.
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Crude oil prices of Brent futures went down by 3.3%. Crude oil prices of West Texas Intermediate also fell below $55. The drill agents in the United States are happy since the costs and prices both have been affected. Crude oil prices may drop some more since OPEC won’t slash production.
Crude oil prices sank by 45% as OPEC tried to hold on to its end of the bargain. OPEC holds the reins of the world’s oil production firmly in its hands and it will not refrain from continuing its rapid output of oil.
Crude oil prices will continue to drop unless some evidence is shown to the contrary according to a Scandinavian analyst. Crude oil prices that are extant in Saudi Arabia, Iraq and Kuwait show that these countries are ready to sell their natural resources no matter what the consequences.
Crude oil prices are expected to drop to $50 per barrel by the end of next year. Now that is one cool deal that will have to be seen to be believed. OPEC led by Saudi Arabia increased output and the already swelling US oil boom led to a surplus in the market thus reducing prices.
China meanwhile happens to be the largest Asian consumer of crude oil. It has its own story to tell. Oversupply may benefit it although the fact remains that the market mechanism is very delicate indeed and if you touch it here it moves there like jelly.
It seems in a global village where OPEC holds the purse strings as far as oil production and costs are concerned other nations such as America and Russia are hurrying to shore up their own supplies back home. They don’t want to remain dependent on the Arabs for oil for the long term future. That would be suicidal and self-destructive for these advanced countries.