Is there an End: Barrel costs 26 USD?

oilThe fall in crude oil prices is lasting for 6 days in a row, and in 1 p.m. a barrel of black gold on Thursday amounted to 26.4 USD.

It is the value of the final product in the US market (WTI), which these days achieved prices that were seen last time in early 2002. Back then, it was the start of the process of growth that culminated in June 2008 when a barrel cost incredible 144 USD.

Meanwhile, the value of European Brent is decreasing as well, which cost 30.2 USD per barrel at 1 p.m. This oil from the Mediterranean Sea maintained value obtained at the end of last Tuesday thus creating an increasing difference from nearly 4 USD cheaper WTI.

Experts do not see the solution because they cannot predict a recovery in demand. Goldman Sachs presented an analysis in which the growth of demand, which is crucial for stopping the fall in prices, will not be noticeable until the second half of 2016.

Also, US oil reserves are increasing, and the latest report of the local Energy Agency states that the United States possess 65 million barrels.

A number of other factors affects the oil prices such as the relationship between markets and large customers. An example is the difference in the offer of Iran and Saudi Arabia to the Asian countries, where Tehran offers slightly cheaper black gold.

(Source: I. P./

Leave a Comment