18.02.2015 - What the oil price crash means for investors
Why has the oil price crashed? The oil price has nearly halved over the last eight months. The cost of a barrel of Brent crude, the most common measure of oil, hit $115 last June but stands at just $62 today. Price falls this dramatic are down to one of two things: a drying-up of demand or a glut of supply. Experts side with the latter. Figures for oil demand can paint a confusing picture. The International Monetary Fund (IMF) has estimated that between 35% and 40% of the fall in the oil price in the second half of 2014 can be accounted for by a decline in demand. However, monthly data from the US Energy Information Association shows global oil demand rising at a steady pace up to December...............................................Full Article: Source
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