Even with the current climate being volatile, especially in places such as Syria, Iraq and North Korea which usually has the effect of driving up the cost of oil, the opposite is in fact happening, and we are seeing the price of a barrel of oil continuing its downward spiral in price.
The main reason for this extended run of low oil prices is down to the fact that there is a massive over-supply in the global market place, and oil traders in particularly are getting worried about whether there will be any attempt at cutting back supplies, which then has the knock on effect of driving up the price of a barrel of oil.
However, this current situation should be music to the ears to everyone with a vehicle and those companies who are associated with the transport business for with oil prices falling and gas prices falling at the pumps their overheads are of course much lower.
Early trading today saw the price of a barrel of Brent Crude falling below $47 a barrel which is a five month low, in fact it was only yesterday that the cost of a barrel of Brent Crude was $50, which does represent a large drop in price.
Two other commodities have also seen a sharp decrease in their respective price recently that being both Iron Ore and Copper.
Two major oil suppliers, those being both BP and Royal Dutch Shell also posted very lower than expected profits having posted prior to those some recent increases in profits before this latest drop in profits, and that drop in profits may continue for some time.
There was some hope that the price of oil may continue to rise and there the oil supply business was full of optimism about the months and years ahead, in fact it was only in 2014 that Crude Oil was above $100 a barrel, but those days look long gone and are unlikely to return any time soon.
The current price of oil is not however the lowest it has been in recent years, for it was just last year that the price of a barrel of oil was $30, it was at that point in time however the OPEC Cartel stepped in and collectively cut back production which then drove price up.
There are always plenty of benefits of very low oil prices as most industries do rely on oil for their businesses, and as such whilst those involved in the oil supply business may be currently licking their wounds, bosses in other businesses will be pleased the price of oil is continuing to drop, and will be hoping it does so for some time yet.
