Oil Prices Continue To Decline!

We’ve watched oil prices get cut dramatically recently. After with increased oil production in the United States, slower economic growth in Europe and China, as well as a dramatic price cut from Saudi Arabia. While many expected a proposition to cut oil production in Saudi Arabia in attempts to drive the price back up to come on Thursday, it looks like that’s no longer the case. With no major changes expected from OPEC, oil prices continue to decline. Today, we’re going to take a close look at what we’ve seen in the value of oil over the past month and try to figure out what to expect moving forward.

What We Saw In Oil through November
After the slight increase at the end of October, oil prices started November at about $88 per barrel. Unfortunately, from the 1st of the month to the 4th, oil prices went on a dramatic decline. By November 4th, the price per barrel had fallen to just over $83 per barrel.

On November 5th, the Brent Crude Oil chart seemed to go flat. Through a bit of slow growth, oil prices were just touching the $84 per barrel price by the 7th. Unfortunately, the price of oil would go on a steep decline following the modest gains. By November 12th, the price of oil had fallen to just over $81 per barrel; and that’s not the worst of the news.

After the EIA released a crude oil status report one day late due to Veteran’s Day, the price of crude oil would go on the most dramatic drop of the month. By the end of the day on November 13th, the price of crude oil had fallen to under $78 per barrel.

After the dramatic drop we saw November 13th, it looked like a recovery could come. By the end of the day on November 14th, the price of crude oil had jumped to more than $79 per barrel. Unfortunately, the possibility of a recovery was short lived as prices continued falling on the 15th. By the 19th, prices had fallen to just over $78 per barrel before yet another small rebound.

Following the steep decline, November 20th and 21st were great days for Brent Crude Oil. Throughout both days, the price of oil would go on an upward trend; ending the day of the 21st at more than $80 per barrel.

Unfortunately, as the past three months of oil price trends would have it, the recovery was short lived yet again. From November 21st to today, we’ve been seeing dramatic declines in oil prices. As a matter of fact, with the news of the possibility of a production cut being slashed, we’re experiencing yet another incredible decline. Currently, the price has fallen to $77.65 per barrel and seems to be on a continuing downward trend.

What Should We Expect From Oil In The Near Future?
If you would have asked that question Monday, it would have been a hard one to answer. However, after reading the headlines that OPEC will most likely not cut production in Saudi Arabia oil, it seems easy enough. The bottom line is that without a cut in production, the trend in oil will most likely remain. As a matter of fact, some experts have already started to theorize that oil may reach $35 per barrel as a bottom line price in 2015. Only time will tell how low it drops, but it’s easy to see that the trend is here to stay; at least for the near future. Thanks for reading everyone!

This article is written by Joshua Rodriguez for anyoption - Joshua is regular contributor to the anyoption blog