Oil Price has dropped to the lowest, World Response happy
This is just another happy news for Asia when the crude oil price dropped down to USD 125,95 per barrel. According to printed media, the price drop due to US and Europe economic Slow down. oil importer glad for this new oil price. Another hope if the condition much more better, the oil price could drop below USD 200 at least for another six or 1 years ahead.
Adequate oil reserve both in US and world was also contribute to oil price decrease.
New rule to arrange trade for commodity in the market is being created. This new rule hope can stop the world oil price in hiking for another 5 or 10 more years ahead.
First Executive, Alexei Miller stated that oil price might reach USD 250/ barrel at the end of this year. Today oil price exceeded USD 145/ barrel. Economic around the world might highly under preassure. Transportation sector might be paralyse due to this hiking oil price. Well, there will be the next chapter of crisis phase in the future, if there in not furher and precise action. The report said that there are nothing wrong with the oil demand and supply. But what cause this price hiking unstoppable is the fund speculators behind the price boosting. Saudi Arabian Minister of Energy stated, their countries will increase the oil production to 20% from earlier production per day.
If the problem is fund speculator, then the world might secure the speculator fund to keep the oil price boosting up even the USD currency fall. Soft solution is look like can’t safe the oil price, might be hard solution can’t stop the price from boosting.
Limiting the amount that hedger can be played in the commodity market around the world at a certain time might be a best solution.
Tags: Oil , Price , Alexei , Miller , Energy , Transportation , Speculation , Fund
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