Lowest
Since March 2009
Brent
crude prices fell to $45.46 per barrel today, while U.S. WTI crude fell to $40.45,
the lowest prices for both since March 2009. Oil prices have now extended
longest decline since 1986.
Slower
demand growth, including the weak demand in China, and global oil glut,
including Middle East and U.S. shale oil production, are generally seen as
factors driving the prices down. Geopolitical concerns, including the simultaneous
wars in Iraq, Syria, Libya and Yemen appear to have limited impact on the
current saturated oil market.
These low prices create serious problems for petrostates, including Iran. The current Iranian budget, for example, was revised downward earlier this year to account for oil at $72 per barrel. Brent at $45 (with Iran oil generally lower than Brent) will create serious budgetary issues for the country, especially when it is involved in armed conflicts in Iraq, Syria and Yemen.
These low prices create serious problems for petrostates, including Iran. The current Iranian budget, for example, was revised downward earlier this year to account for oil at $72 per barrel. Brent at $45 (with Iran oil generally lower than Brent) will create serious budgetary issues for the country, especially when it is involved in armed conflicts in Iraq, Syria and Yemen.
4 comments:
Well, so Ahmadinejad should be back.......?
And oil price would go up.
Interesting universe you're living at!
I got a chuckle out of it, myself.
You got the sequence wrong .The price of oil has to go up first before Ahmadi-nejad could make a come back politically .For that reason alone , we should all hope for lower oil prices to keep Dr. Mahmoud " I-need-a job " Ahmadi-nejad out of office .
Mr. Uskowi , keep us posted when it dips below $ 40 .
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