The oil prices moves down and it seems that it does hit bottom! Today it reached its lowest point since 2005. Brent oil is today down 3% and goes for a remarkable 32,58 dollar. Many experts start to fantasize about 25 – 29 dollar per barrel. The reason for this pessimism is China and the problems at the Chinese stock market and the fact that China alone has been creating a growth in the oil market since 2003. Do remember that the product prices in China have been fallen for 46 months without pause, and that we find only a half-inflation rate of the Government compared to the intended rate. It is positive to notice an increased initiative for green solutions this year, enhanced from the Paris agreement!
As the markets around the world enter a semi-panic, we see small possibilities for an instant cure. A lot of oil is stored for sale around this planet, and new providers are just waiting for a green flag to start selling (Iran). This is bad news for production and the oil price per barrel. Most likely we will observe changes in the market in the near future and that is not changes for the best.
I guess we will find 25 per barrel before it changes again for something more positive.
At closning time today 11.01.2016 the barrel went down to 31.18 USD(!), 6.1% down today only. The key here is a strong dollar creates a low oil price. It is estimated that it the doller go up 5%, the barrler of oil will go down 10-25%. If that hold ground we might experience a barrel down to 20-25 USD.
Update 13.01.2016: Oil price per barrel 29.94 USD as the lowest. First time since 2004, and lower than during the finance crisis.
Update 15.01.2016: Oil price per barrel 29.06 USD, but for some time today it went inder 29 USD!
Update 16.01.2016: Oil price per barrel 29.22 USD
Update 18.01.2016: Oil price per barrel 27.99 USD (07:14-07:15)
Update 20.01.2016: Oil price per barrel 27.73 USD (06:20)
Other coments on oil made on this page:
- New record for the Oil – 7 december 2015 (Oil 39.90 USD)
- Oil get cheaper – 21 august 2015 (Oil 46 USD)
- A Barrel of oil – 13 aug 2015 (Predicting 30 USD in a few months)