As the global crude oil prices have been witnessed at the lowest low after the year 2010 due to the global economic downturn in oil prices. The share of major oil companies got affected at the same time the global capital market slowdown has bedew the demand.
The Organization of Petroleum Exporting Countries (OPEC) has said all the member countries should maintain their oil production even though it has a major global economic downturn.
For the major oil market from Saudi Arabia and other OPEC countries that help to stop the oil production, the widespread competition from US oversupply seems to be the immediate factor for such measure.
Oil prices have slumped more than 6% in this year as the signs of a drop in oil prices that has rippled the stock market. Our Analyst Forecasts the prices will remain at huge pressure as WTI and US Brent Crude has continued to show a downtrend.
In previous article claimed that oil prices $36 is becoming a possibility, but however we also predict that the oil prices can’t be much lower than $34/ bbl as it will imbalance the economy.
Despite the heavy export from the US, OPEC countries don’t show the unity and this is because major Gulf economies have been facing a huge problem. In today’s trading session, there can be a major jump in the Crude Oil prices after a huge fall-out from the past few weeks.
Table 1.1: Fall in oil price on yesterday session
While today we partly predict that there will be bit price rise due to enormous pressure as it might increase in market share.
The US is a world dominant producer while we expect Russia & Iran taking the top 3 spot in the year 2016 & it will be taking a leading oil exporter in the world.
We predict the Oil Price will jump to $ 45 per barrel