Interpreting Middle East Economic News and Analyzing Market Trends

Archive for February, 2015

Why the price of oil is headed much lower in 2015

Oil Prices - Brent up to Feb 9 2015


Hope has returned to the oil market after the price jumped over 20% in the past couple of weeks from multi-year lows.  The price of oil, however, has been falling since June 2014.  The price of Brent Crude, the European benchmark, for example, has fallen from a high of $114 in June to a low of $45 in January.  The recent rise to the $60 range has caused many analysts and commentators to celebrate the end of the collapse of oil prices.  I, however, believe that the recent bounce is no more than a ‘dead cat bounce’ on the way down to much lower prices in the near future… and here’s why…

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