Somehow it seems as if low oil prices are a prelude to something worse than high prices, but the experts think the drop will continue for a few more years. Nina Lamparski:
The OPEC oil cartel sees only a gradual improvement in the global crude market, with prices recovering to above $70 per barrel after four years, according to a report released Wednesday.
The previous high was more than double that. What is it now?
With the global benchmark oil price touching an 11-year low of $36.04 on Monday, the cartel which produces a third of the world’s crude said that it foresees a “gradual improvement in market conditions as growing demand and slower than previously expected non-OPEC supply growth eliminate the existing oversupply and lead to a more balanced market
That’s business speak for supply and demand. Supply is high, demand is low, therefore prices remain low.