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Oil prices over the past year are mixed and often difficult for medium-term forecasts. Just 20 days ago, there was optimism and opinions that $ 100 a barrel is possible and close to that of the exporting countries.
Subsequently, a downward trend has begun, which has now led to a price level of about $ 60 per barrel, and today there are those that should increase and those for which the slowdown will continue.
For some price increases or declines of $ 10 to $ 20 a barrel, it's negligible, but that means increasing or decreasing OPEC countries' revenues from $ 100 billion to $ 200 billion.
In modern history, there are four major reductions in the price of oil, each with its own reasons and explanations. Here is who they are:
1. 1985-1986
The overproduction of oil in the early 1980s led to a sharp contraction in world consumption after soaring prices in 1973 and 1979. To benefit from profitable prices, many countries increased their yields and the market is therefore overwhelming. As a result, oil was traded at $ 35 per barrel in 1985 and fell to $ 10 per barrel in 1986.
2. 1990-1991
Iraq's invasion of Kuwait in 1990 blew up the market and the price of oil rose from $ 15 to $ 41. After the intervention of the United States and the exit of Kuwait by Iraq, prices fell again to 17-18 dollars per barrel.
3. 2008-2009
The first year of the global economic and financial crisis – 2008 – has been tough for the global economy. And after the price of oil nearly doubled in 2006 to $ 140-145 a barrel, there was a drop.
That is why the permission of US President George W. Bush to conduct research on new landfills has contributed to this situation. The panic of oil futures began, supported by Russia's war against Georgia and the ensuing global economic crisis.
Since September 2008, a rapid slowdown has begun, which has led to a price of 100 to 30-35 dollars per barrel.
4. 2014-2015
The main reason for this drop in oil prices is the serious overabundance of supply relative to demand. That is why the experts compared this oil crisis to the crisis of 1985-1986.
All OPEC countries and non-member countries have increased their yields and offer to their full potential. The United States has also begun a boom in oil shale drilling, which is poised to make it the world's number one oil shale. That's why prices have dropped to $ 40 a barrel.
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