- Soon prices of oil would rise to a great extent, that there will be a sharp decline in demand of oil, consequently, pushing down oil prices steeply.
- Some OPEC countries have issued statements that they might increase
oil production following this oil crisis in order to ease the supply
pressure and cool off the demand. This is too likely to push down oil
According to me, the ongoing 'slowdown' in the growth of the global economy and falling growth in industrialized countries will push down oil prices alongwith food prices and other necessary commodities' prices also. Further on, if India and China are unable to offset high commodity prices, they would too fuel a slowdown in oil consumption in their own countries thus pushing down oil prices( but not for too long).
Moreover, Saudi Arabia is all set to break records by ramping up oil output to highest levels following the decision to increase production of 500,000 barrels per day. The increase would bring Saudi Arabia’s oil production to 10 million barrels a day, the country’s highest ever!! With greater supply, and diminishing demand - anyone can guess where petrol/diesel prices are going ----down!!
My fellow bloggers agree too! They go to the extent of saying the Oil Bubble is likely to burst.
Tell me what you think of oil prices here.