Oil could fall to $10

A bar­rel is as cheap as it was in 2004, but that won’t mean much at the pump

CityPress - - Busi­ness -

How the price of oil an# petrol has change#

PRICE OF BRENT CRUDE OIL

JAn 1 2004

JAn 1 2006 Oil price in 4ol­lAr per EAr­rel Oil price in rAn4 per EAr­rel Petrol price in rAn4 per litre

JAn 1 2008

JAn 1 2010

JAn 1 2012 PRICE OF 93 OC­TANE PETROL IN SA IN RAND PER LITRE

JAn 1 2014

R12.09 JAn 1 2016 GrAph­ics24 they do not want to give up their mar­ket share.”

This means that when Iran be­gins ex­port­ing oil again to the tune of 1.5 mil­lion bar­rels a day – the level it pro­duced be­fore the sanc­tions – it will flood the mar­ket and worsen the cur­rent over­sup­ply of oil.

“Saudi Ara­bia can op­er­ate their cur­rent oil rigs at prices as low as $7 per bar­rel with­out hav­ing to make an op­er­at­ing loss. US shale gas pro­duc­ers can only op­er­ate at up to $20 a bar­rel and, there­fore, many peo­ple ex­pect that oil prices will only drop to $20 per bar­rel be­fore they start ris­ing again,” he said.

Coun­try’s sta­tus

PHOTO: ED­DIE SEAL / BLOOMBERG VIA GETTY IM­AGES

A CROWDED

PARTY A pump jack op­er­ates in an oil­field near

Cor­pus Christi, Texas, in the US. Crude oil prices slid to their low­est lev­els since De­cem­ber 2003 this week as tur­bu­lence in China, the world’s biggest en­ergy con­sumer, prompted re­newed con­cerns about the strength of

de­mand

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.