Last three months have been very thrilling for the prices of Brent Crude Oil prices, as they have fallen to $64/barrel. According to the latest details, for the first time since July 2009, the Brent crude Oil prices have reached to $64/barrel. Situation is deteriorating day by day, as major OPEC countries have also failed to reach an agreement to control the global oil prices.
New oil energy source discoveries in USA, overstocking by oil producing countries and slow global economic recovery are causing oil prices to tumble again and again in last few months. Other than these reasons, Geo-political situation of the Middle East is also affecting the oil prices in a big way. Big oil producing countries such as Saudi Arabia are not ready to control the prices, as it will benefit their regional competitors Iran and Russia. Saudi Arabia can easily bear the loss from sliding oil prices, but these tumbling prices are badly affecting the economy of Russia.
Over the course of the year, the world has witnessed a 47 percent fall in the oil rates. If we talk about its impact, sliding oil prices have brought great blessings for the third world countries like India, Pakistan etc. It is blessing for them, because their economy is totally dependent on oil imports. Such deterioration of the rates comes with encouraging as well as undesirable scopes which ought to be understood. The decline in the oil prices has overwhelming effects on the economy of the oil importing countries. Moreover, the taxes on the western consumers lessen as a consequence of such weakening of oil prices. Due to certain tax laws in countries including some countries within Europe, the government might also benefit from the dropping oil prices, but such global effect upsurges consumption as well as lowers the costs of manufacture which is sure to boost the economic conditions of underdeveloped and even developed nations.
Experts believe that latest slide in the prices of crude oil will also bring down the prices of gasoline in countries like United States of America. Expectations are that the oil prices will average at $3.39/gallon in 2014 and $2.94/gallon in 2015 correspondingly.
Market analysts are expecting oil prices to move between $55/barrel to $65/barrel for next few months. Renowned financial institution Barclays is expecting oil prices to bounce back to $75 /barrel level till mid 2015. EIA (Energy Information Association) has also revised its price predictions from $80/barrel to $68/barrel for the year 2015. If we talk about investors they should adopt the policy of wait and see for the time being , as the market situation is very unpredictable.
Furthermore, it is conjectured that the U.S. crude oil production which averaged at 8.9 million barrels per day in October, 2014 will exceed 9.0 million barrels per day in December. Likewise, it is estimated that the production will average at 9.4 million barrels per day in 2015 which in fact exceeds the average crude oil production in 1972. Moreover, the production of Natural gas plant liquids is supposed to escalate in proportion to the crude oil. It is precisely predicted that the natural gas plant liquids production will escalate from 2.6 million barrels per day to 3.2 million in 2015.