What is the reason of the last drop in oil prices?

X880862531X · Post by **X880862531X** » Sat Jan 17, 2009 5:25 am

[align=justify]Dear friends,

all of us heard about the last great drop in oil prices which happened in the last months of 2008. It was combined by economical problems all over the world. I heard that prices began to go up very very slowly nowadays.

I heard many people speaking about the last drop in oil prices and noticed that their opinions are different. I c that there is something unknown or strange. I heard that oil production rates were going up till 2005 then began to go down. This means that supply should decrease, demand should increase & prices should go up!!.. I feel that politics has a clear effect on this matter.

Please I want 2 c yr comments and the reasons which caused the last drop in oil prices ( from yr point of view )..[/align]

X880862531X · Post by **X880862531X** » Mon Apr 20, 2009 5:23 am

[highlight=Cyan]Three months passed and there are no replies[/highlight]

Post by **FANARCO** » Wed Apr 22, 2009 3:06 pm

I think this is not a drop
The current prices support the oil status
Although the world financial crisis, the oil price couldn't break 45 $/BBL
Note that in 1998 the oil price was 5-8 $/BBL with no financial crisis which means it is now very strong in presence of financial crisis

There are many indicators that the oil will go rally to 200 $ and more

1- It is a strategic commodities
2- The big industrial countries will never leave the crisis as it is. The car factories, petrochemicals, .....etc will work again and they will require more supply after that crisis
3- The middle east wars (Iraq, Palastine, and may be Sudan)
4- Al-Qaida hitted many refineries in Arabian countries
5- Failed to get alternative of oil. The main energy of the world is still Petroleum.