What’s behind the falling price of oil?
With the price of oil now below $30 a barrel, the industry is in its deepest downturn since the 1990s.
With too much global supply and the lowest price in nearly 20 years, there is anxiety about a possible oil market meltdown.
US crude prices fell below $30 a barrel on Tuesday, before settling down, but only a bit.
While most major oil companies are slashing their budgets and jobs, some of the biggest oil companies like Saudi Aramco have not cut back on production.
And some OPEC states, like Iran and Iraq, are looking to increase production.
In the past year, the price of a barrel of oil has fallen by more than 50 percent.
The highest price in the last 12 months was $110 a barrel.
Some investment bankers are now warning that oil could crash to $10 a barrel.
So, what’s behind the falling price of oil and what does it mean for consumers?
Presenter: Peter Dobbie
Guests:
Cornelia Meyer – CEO of Meyer Resource, A Macro-Economic and Energy Policy Advisory.
Bismarck Rewane – Managing Director of the Financial Derivatives Company.
Mamdouh Salameh – International Oil Economist and Consultant.