Dubai crude oil price outlook

But nothing guarantee[d] such price levels in perpetuity ". The supply of oil is dependent on geological discovery, the legal and tax framework for oil extraction, the cost of extraction, the availability and cost of technology for extraction, and the political situation in oil-producing countries. A combination of factors led a plunge in U.

Retrieved 30 December Oil is marketed among other products in commodity markets. The Journal of Economic Perspectives. Economists have observed that the oil glut also known as s oil glut started with a considerable time-lag, more than six years after the beginning of the Great Recession:

According to a U. Retrieved 5 October Retrieved October 17, Retrieved 5 October

Oil depletion and Peak oil. If the dubai crude oil price outlook market is in " contango "—the forward price is higher than the current spot price —the strategy is very successful. This means that the general price of a basket of goods would increase at a bare minimum on a year to year basis. There are those who strongly believe that the market has undergone structural changes and that low oil prices are here to stay for a prolonged period. Both domestic political instability in oil producing countries and conflicts with other countries can destabilise the oil price.

During —, OPEC members consistently exceeded their production ceiling, and China experienced a marked slowdown in economic growth. By using this site, you agree to the Terms of Use and Privacy Policy. It has also been argued that the collapse in dubai crude oil price outlook prices in should be very beneficial for developed western economies, who are generally oil importers and aren't over exposed to declining demand from China.