Price of Oil Expected to Push Much Lower

December 5, 2008

(ChattahBox) — As the global recession settles in, the price of crude oil is expected to push much lower. According to the oil industry experts the price of crude oil could slump much lower into the $30s. The demand for crude oil has deteriorated significantly over the past week months. The slump in the price has been further triggered by factors like rise in inventories and shifts in the quality of oil used by refiners.

Oil prices were steady on near four year lows below $44 a barrel on Friday in Asia. The price for sweet, light crude was down by 3 cents at $43.64 a barrel in electronic trading on New York Mercantile Exchange. The profits for the oil companies have plummeted largely in the past several weeks. They had posted huge profits in past few years as the prices had risen to record levels. Exxon Mobil, the world’s largest publicly traded oil company, had recorded $15 billion profits this summer when the oil prices touched nearly $150 per barrel. Chevron and Conoco Phillips made $18 billion and $5 billion respectively.

As some experts comments that “those record numbers are history” other speculate that the profits will bounce back soon as the economy is again on track and oil prices improve in due course.

The Organization of Petroleum Exporting Countries ended their weekend meeting in Cairo without reaching any decision regarding a production cut. The group again meets in Oran, Algeria on December 17 and will once again discuss necessary action to be taken. The group has decided to wait and watch before ensuring strict compliance output limits before cutting again. Read our report here on why OPEC may not be able to come to a decision regarding a production cut.


Comments

One Response to “Price of Oil Expected to Push Much Lower”

  1. Home Business on December 5th, 2008 5:18 pm

    Its seems to be a good news for all that the price of oil is going to be cut much lower.The cruide oil is certainly one for the cause that may effect the worlds economy.So its always needed to control the oil prices…

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