The expected upward movement in the oil price predicted by analysts consequent to unilateral sanctions being re-imposed on Iran by the US has not materialised.
Instead global oil prices have resolutely headed in the other direction. A twenty percent drop in the price of the black stuff in the space of six weeks.
This should be good news of course, we all like lower oil prices, but the sting in the tail is that prices have dipped because demand is dipping, global demand that is, which in turn signifies that the global economy is slowing.
Although increased exports of oil from the US and Saudi Arabia have also played a part.
Analysts don’t rule out a rapid return to high oil prices, if the risk of a slowdown in China fades. So they’re hedging their bets, in the meantime energy costs should remain lower.
Stalker couldn’t help but notice that prices at the pumps are not dropping anywhere near as quickly - rocket and feather indeed!
As the glut grows, oil is currently under $60 a barrel.
