Tuesday 19 January 2016

The drop of oil price....A blessing for some and a curse for others


My dearest and adorable friends

None of us are insensitive to the drop of world oil price since quite a long time now...

And with the lift sanctions on Iran...we are expecting an additional half a million barrels of Iranian crude to this already saturated market.

Since the mid 2014 the price have slumped by 3/4..What used to be above 100 USD a barrel is now being sold for less than 28 USD a barrel

The drop in price mainly due to excess supply, record output levels, weak demand growth and a slowing global economy led by China.

But OPEC expects a 'rebalancing process' as the sharp fall in oil price is causing production from non-cartel competitors such as US to fall.

If the prediction is accurate, it would make a victory of sorts for OPEC's strategy of keep the oil flowing despite crude sliding from above US$100 in 2014 - to defend its market share.

The drop of oil prices is surely having a global impact...A blessing for some...and a curse for others...

Wishing the best for the world.

Have a great day.

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