Angry Meditations

crude-oil-14331

Black gold isn’t so valuable these days. Current estimates at the time of writing show WTI crude oil selling for $56 dollars p/barrel and Brent crude oil selling for $61 dollars p/barrel, the lowest prices since May 2009. In this blogpost, I discuss what events caused the price to plummet, as well as who feels the consequences.

Why has the price of oil fallen?

Western and developed nations didn’t need so much…

  • Japan, having closed its nuclear programme and temporarily switched back to oil due to the Fukushima disaster, has reinstated its nuclear plants and no longer needs so much oil. This took a customer off the market.
  • Germany, France, and China had all increased their industrial sectors, and needed more oil to feed them. But the post-recession expansionism in their respective economies has steadily dissipated. This again takes some customers off the market because their economic recoveries have lost…

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