Oil prices continued their
decline for the eighth straight week. Brent crude closed at $42.62 a barrel today. Serious
concerns over China’s slowing economy on top of the saturated crude oil market
are causing the current downturn with no signs of reversal anytime soon. Even
geopolitical factors, including armed conflicts in Iraq, Syria, Libya and Yemen, which would have normally kept the prices high, are having limited impact on the market.
Since late 2014, oil prices dropped
by 60 percent, creating fiscal crisis for petrostates whose foreign exchange
earnings mainly come from the oil sector.
No comments:
Post a Comment