Why Oil price is near $30 a barrel?

Asked by bxander 5 years, 7 months ago | 1 Answers

1 Answer

phamus 5 years, 7 months ago

There are many reasons and speculations but I can name some here and people can add their own opinions/comments as needed.

  • It is the simple economics of supply and demand (e.g. China's demand has been falling).
  • United States domestic production has nearly doubled over the last several years.
  • Inventory is at record high.
  • Saudi and many nations' oil supply that was sold to the United States is competing for Asian markets, and the producers are forced to drop prices.
  • Non-OPEC oil production and exports are rising year after year including the Russians.
  • Unwillingness to cut production to allow prices go up because producers afraid they will lose market share and benefit their competitors.
  • Iranian oil exports are coming back into the market.