Rix oil market report November 2014
by
December 2, 2014
OPEC members got together last week against a back-drop of startling falls in the oil price but still decided to maintain current production levels, with a further meeting planned in 3 months’ time. This to “re-assess the market and make an appropriate decision at that time”. On hearing the news, the market reacted swiftly and prices dropped by a staggering $4 per barrel in 2 hours (over 2.5 pence per litre) on 27th November. The logic is simple; with the world now awash with crude oil, only OPEC members have the power to immediately cut supply and put a floor on oil prices. And when they didn’t, prices crashed. This continues to be good news however for the end consumer, fuel tanks for cars are cheaper to fill up and so is the price of heating oil, especially good news as we fast approach Christmas and the middle of winter approaches.
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