Business experts fear oil prices might drop more

(IraqiNews.com) After Brent Crude price dropped to $59, oil prices are expected to touch even $50, especially with neither Russia nor OPEC not willing to reduce production to push up prices, according to business experts.

For the first time since May 2009, oil prices continued to drop as a result of waning demand and increased supplies, and the latest fall was with Brent Crude price, which dropped to $58.50 a barrel, and then slightly recovered to $58.94.

The International Energy Agency (IEA) last week cut its forecast for next year’s oil demand growth by 230,000 barrels a day following similar cuts by OPEC and the U.S. Energy Information Administration.

Experts believe that the prices might still fall with neither Russia nor OPEC not reducing production to push up prices. “Things might still get worse,” a London-based oil broker said. “The market still feels very vulnerable and I can see it touching $50 this week which would be a shocker for everybody.”

 

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• Crude prices dive after OPEC’s no production cut decision