Friday 24 March 2017

Oil crash couldn't have come at worse time for Middle East

Firefighters try to put out the fire in an oil tank in the port of Es Sider, in Ras Lanuf, Libya last month. Isil have been setting fire to Libya’s oil terminals in attacks
Firefighters try to put out the fire in an oil tank in the port of Es Sider, in Ras Lanuf, Libya last month. Isil have been setting fire to Libya’s oil terminals in attacks

Mary Fitzgerald

The drop in oil prices over the past 18 months has been nothing short of dizzying, plummeting from $115 a barrel to around $28 at present, the lowest level since 2003.

Many analysts predict it has some way to go yet, with some even raising the prospect of an oil price as low as $10 a barrel.

The precipitous decline is due to several factors: the growth of fracking in the US has disrupted supply-and-demand patterns, and the faltering of once-booming economies in states like China and Brazil has also had a considerable impact.

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