Oily Overtures
07/08/2015 |
Oil has suddenly fallen from $60/bbl to $52/bbl, near the multiyear low of $45/bbl set in Q1/15. This is because: Iran plans to increase exports once sanctions are lifted, OPEC is increasing production, US oil-rig counts rose for the first time in 29 weeks last week, US production is the highest since 1971, crude oil stockpiles are rising and China, which accounts for 30% of global demand growth, is slowing.