Factors Behind the Steep Decline in Crude Oil Prices
Published By: Arab Center for Research and Policy Studies | Published Date: December, 01 , 2015The price of crude oil has lost 54% of its value since September 2014 and there are no indications that the fall in prices will stop here unless a major production cut by OPEC is declared. The reasons given for the steep oil price decline thus far include: a glut in the global oil market caused by rising US shale oil production, over-production by members of the Organization of Petroleum Exporting Countries (OPEC) beyond their production quotas, and a slowdown in China and European Union (EU) economic growth thus reducing global demand for oil. This paper further examines the reasons for this decline.
Author(s): Mamdouh Salameh | Posted on: Jan 29, 2016 | Views()