Reduction of oil prices will not stop in the New Year, it will be continued. This month one barrel of oil could go down by one third to $40.00. Experts have different forecasts, but they all believe that oil prices will be stabilized no earlier than the second half of 2015, writes www.gazeta.ru.
Since mid-summer 2014 Brent oil futures started going down and by the end of December dropped from $115 to $60.00 per barrel. The psychological limit of $60.00 has been broken several times, but every time the price went back up.
In December 1998 the oil price went down to $9.10 per barrel ($17-18 in early year), but since the early 1999 they started growing and by June 1999 they exceeded $15.00. During the next world crisis in 2008 the oil price was a little bit over $33.00 per barrel by December dropping from record $147 in July. Stable growth started only in the second half of 2009, during which 1 barrel cost over $60.00.
OPEC has added fuel to the fire at its last session at the November by refusing to reduce production. OPEC ensures over 30% of the world oil production extracting almost 30 million barrels a day.
According to one of the versions, Saudi Arabia deliberately reduces prices to prevent breaking of the US shale oil to the world market (with low prices many projects will become unprofitable). According to another version, Er Riyadh has been working together with the US and reduction of oil prices is aimed first of all against Russia.
At the end of December 2014 Saudi Oil Minister Ali al-Naimi said in his interview to Middle East Economic Survey that oil price may never go up to $100 per barrel.—0—
Economics
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