This year does not portent well for the price of Brent crude. Iran and Iraq are already bringing their production back online and Libya will be back in the market in full force later this year. OPEC predicted rising demand to justify its failure to cut its output. However, with the BRICs in or on the threshold of recession that forecast seems to be flawed. Brent crude could possibly fall this year and Putin would be in trouble. His encouragement of a crisis in Ukraine could have been an attempt to bring panic to oil speculators and support the price of oil, thus saving his budget. However, that gambit seems to have failed. The Brent crude oil price fell throughout the crisis and remains below the vital $110 mark.
Posted on: Sun, 20 Apr 2014 20:02:50 +0000
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