The fall of the oil price
After reading many articles on various sites, the best one was this article from CNN Money website, which was published on 13th January 2016, and the title is $10 oil: Crazy or the real floor beneath the oil crash?
With this drop in the oil price, many questions were raised wondering the cause of it, for example, how low could reach this price and when would rise again. This is what the article talks about, how low the price of oil got, below $30, and how investment banks are trying to figure out how low the crude can get.
Since the year of 2014, the oil price began to have a sharper drop and this drop was much higher than expected. The article mainly talks about how the oil barrel’s price fell and how it got below $30 for the first time since 2003. Standard Chartered, a British bank, said that those predictions aren’t dark enough. The bank said in a new research it is possible that the price of oil falls more than $ 10 a barrel.
Besides having an oversupply trouble, there is also the fear of the fall of China's economy, which is falling more than expected. In addition, the tension between Saudi Arabia and Iran is worrying OPEC (Organization of the Petroleum Exporting Countries) on how they will restore the oil prices.
However, most observers think oil’s price will be rising to $50 by July.
A few oil-producing countries will suffer economic turmoil. It is possible that the United States will face some economic challenges. Some smaller oil companies that are heavily indebted may go out of business. It’s probable that many companies will have their demand and supply decrease to left. The