Please Register or Log in to view the hidden image! I ask this because the current "BRENT" oil price seems to be dropping under $80 per barrel, this inevitably leads to a conclusion that the possible lowest price per barrel in the future might drop to $40 per barrel. What happened in 2009 exactly that caused such low oil prices and what reversed this process?
The worldwide economic crisis that began in 2008. The current fall is being caused by the US development of shale oil and gas. If it gets to the point where the US no longer needs its "friend" Saudi Arabia, the corrupt leaders of that country should worry.
I would have guessed that the drop was largely due to the speculators unwinding their long oil positions. I say this because in late 2008, I was getting many cold calls trying to sell me oil futures. I've found that cold calls of this sort are counter indicators. The same was true at the top of the gold market.
As the captain pointed out, there is a glut of oil on the oil markets brought about by increased US oil production and the decision by Arab states to compete for market share rather than on price. OPEC meets in about a week and a half. If OPEC doesn't cut production, oil prices could get much lower in the days, weeks, months and years to come. Russia needs $100/per barrel oil. US shale producers need $60/barrel. Saudi's need $30/barrel. There is a lot of downside potential for oil prices and not much upside potential. Increased US oil production is a sea change event for the oil industry.
Could staging a revolution in Libya and halting the oil production in that country through funded protests which would halt the operation of the major oil suppliers in the country, kick the oil price up?
Libya doesn't produce that much oil and the oil it produces is exported mostly to Europe. And there is no evidence that any foreign power instigated the revolution which deposed Muammar Gaddafi.
US and NATO forces did it, with help of an inside revolution as well. And than came Egypt and than Syria...same strategy by US. same old excuses of "democracy". blah blah
Kaddafi got killed, the oil resources went to the West. revolution done. US happily called it a "liberation" Britain and France joined in too. Please Register or Log in to view the hidden image! Now Europe is sucking the oil out from Libya and calling it "liberty" Nice job well done.
Actually, that is a little disingenuous or ignorant. Libyan oil belonged to the Libbyan state before the revolution and it remained owned by the state after the revolution.
