Crude oil prices may not stay at USD 50 or below for long
In an article today in an Indian News paper "Business Standard" there is a caution that the current celebrations about low crude prices may not be there for long. The link for the article is given below http://www.business-standard.com/article/markets/four-reasons-why-the-latest-crude-oil-price-crash-may-not-be-sustainable-115010800845_1.html According to the article, the crude prices have come down because of Raising US Shale Oil Production Insistence of OPEC (Organization of Petroleum Exporting Countries) to continue production to maintain its market share Slump in demand from major importers However this continued reduction may not be sustainable in the long run as according to the author, a price below USD 60 is not beneficial to the US Companies into production of Shale oil due to costing. A second factor is the shrinkage of oil revenues of major oil producing countries like Russia (Oil accounts for nearly 45% of budgeted revenues) and Venezuela. This may...