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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