Oil prices is melting down is becoming a hot topic among consumers and the world's superpower.Since June of 2014, oil prices subsequently fell to more than 55 percent below the $ 50 per barrel, the lowest level since 2009.
1. What is the reason behind the drop in oil prices?
Many inquiries seated among consumers, but in terms of the economic definition causes associated with supply and demand.
US oil production has risen nearly 2 times in the last 6 years. This makes the US oil imports have decreased, and the oil-producing countries are turning to new markets. Saudi Arabia, Nigeria and Algeria, which previously relied on the US market is turning its struggling rival markets in Asia, forcing Oil prices fell recovery.
Thinking on the size of the economic needs of the countries in Europe and developing countries are weak, which makes the use of Oil and vehicles in all production was reduced. This demand also had a slight decline and lead to all the oil-producing countries is difficult to compete for market.
2. Who profits?
As you all know, everyone has all the means to travel or other business. Millions of liters of gasoline consumed worldwide, worth no less dollars. Although the cheap oil to some of the largest oil slight headache, but people all over the world are enjoying the price of oil which is headed down.
Countries, the use of oil production in a very satisfying situation, the price of oil today, especially India and China, which has the largest population in the world.
3. Who loses?
Oil-producing countries such as Venezuela, Iran, Nigeria, Ecuador, Brazil and Russia may suffer losses, leading to an impact on the national economy. State in the Persian Gulf could reduce investment around the world, as well as aid to the country under
Normally, oil prices rise and fall, like other commodities, but they always have a solution to avoid a gap too. In the past, oil-exporting countries (OPEC) always reduce the refinery to maintain balance and stability High .
Iran, Venezuela and Syria is implementing a trace, but the King of Saudi Arabia and the United Arab Emirates, as well as other allies in the Gulf declined reduction. At the same time, Iraq was thrust pump more oil.
Saudi officials said that if they cut production, oil prices will rise, and it may lose market share at Rivals benefit. You have confirmed that they would like to see oil prices fell more than this, but some oil analysts expression said that Saudi Arabia is different from want.
4. Is there a possibility of collusion drop in oil prices?
Apart from the production of the United States, there is an increase, and the market demand drop some doubt that there is a including from major powers to shake the oil market. Saudi Arabia and the United States can join together to drop the price to beat Russia and Iran.
Despite this, Russia seems to be debilitating because since oil prices fell in the 1980s to a This is not shaken. On the other hand, have no reason to show that the US collusion with Saudi Arabia, because the two powers, money is less likely to cooperate with each other well .
In addition to the Obama administration really difficult to convince hundreds of oil companies in losses and faced with all shareholders.
5. When the price of oil can be recovered?
This probably will not happen soon because the current oil production in the US and other countries is picking growing steadily. In addition to predicting that crude oil prices will drop to below $ 40 a barrel soon ahead. However, production may fall in the 2nd half of 2015, which will open the way for oil prices started to head .
6. Egyptian crisis
In the United States, some states, such as Alaska, North Dakota, Texas, Oklahoma, including Louisiana will see greater economic competitiveness. Many other smaller oil companies may have a crisis until the bankruptcy, and the pressure of the banks they borrow the money invested.
7. What's happening in OPEC?
Normally, oil prices rise and fall, like other commodities, but they always have a solution to avoid a gap too. In the past, oil-exporting countries (OPEC) always reduce the refinery to maintain balance and stability High .
Iran, Venezuela and Syria is implementing a trace, but the King of Saudi Arabia and the United Arab Emirates, as well as other allies in the Gulf declined reduction. At the same time, Iraq was thrust pump more oil.
Saudi officials said that if they cut production, oil prices will rise, and it may lose market share at Rivals benefit. You have confirmed that they would like to see oil prices fell more than this, but some oil analysts expression said that Saudi Arabia is different from need.
