Since June 2014, oil prices subsequently fell to more than 55 percent below the $ 50 per barrel, the lowest level since 2009.
What is the reason behind the drop in oil prices?
Seated many questions among users, but by definition economic reasons associated with supply and demand.
US oil production has increased by nearly 2 times in a period of approximately 6 years. This makes the US's 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 was turning its struggling rival markets in Asia, forcing Oil prices fell recovery.
Think on the size of the economic needs of the countries in Europe and the developing countries are weak, which makes the use Oil and vehicles in all production was reduced. As demand for oil also fell a little bit as well, and led to all the oil-producing countries is difficult to compete for market.
Who profits?
As you all know, everyone has all the means to travel or other business. Millions of gallons of gasoline are consumed all over the world who think no less dollars. Although cheaper oil makes oil powers a slight headache, but people all over the world are happy with oil prices This is headed down.
Countries that use oil production is satisfied as to the situation in oil prices today, especially India and China, which has the largest population in the world.
Who loses?
Oil-producing countries such as Venezuela, Iran, Nigeria, Ecuador, Brazil and Russia may suffer great losses, leading to an impact on the national economy. State in the Persian Gulf could be reduced investments around the world, as well as aid to the countries that are such as the Egyptian crisis.
In the United States, some states, such as Alaska, North Dakota, Texas, Oklahoma, including Louisiana to meet the increasingly competitive economy. Many other smaller oil companies may have until the bankruptcy crisis and pressure from the banks they borrowed money to invest.
What's happening in OPEC?
Usually always fluctuating oil prices, like other commodities, but they always have a solution to avoid a gap too. Previously, the oil exporting countries (OPEC) always reduce the refinery to maintain price stability and balance higher .
Iran, Venezuela and Syria are carried traces but king of Saudi Arabia and the United Arab Emirates as well as other allies in the Gulf declined reduction. At the same time, Iraq also flocked to pump more oil.
Saudi officials have said that if its production cuts, oil prices will rise, and it could lose market share at profitable rivals. This indicated that it would like to see oil prices fell more than this, but some oil analysts expression Saudi Arabia is different from want.
Is it possible collusion drop in oil prices?
Apart from the production of the United States and an increase in market demand dropped some suspected join hands of the big powers to shake the oil market. Saudi Arabia and the United States gathered together the drop in oil prices to harm Russia and Iran.
Even if Russia seems not to be softened because since oil prices fell in the 1980s, a This is not shaken. On the other hand, had no reason to show that the US collusion with Saudi Arabia, because both money powers not so good cooperation with each other .
In addition to the Obama administration really difficult to convince hundreds of oil companies who are in the country to suffer and face with all shareholders.
When that oil prices could rebound?
This probably will not happen soon because the current oil production in the US and other countries is picking increased steadily. In addition to predict that crude oil prices will drop to below $ 40 a barrel soon front. However, production may fall in the 2nd half of 2015, which will open the way for oil prices began to recover repeat.
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