CAMBRIDGE – The price of oil has fallen more than 25% in the past five months, to less than $80 a barrel. If the price remains at this level, it will have important implications – some good, some bad – for many countries around the world. If it falls further, as seems likely, the geopolitical consequences on some oil-producing countries could be dramatic. The price of oil at a
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There's a standoff happening between the old oil powers and the booming US shale industry, as the OPEC oil cartel is thought to be pushing down prices to drive new production offline. But the investment bank Citi says it's not a fight that OPEC leader Saudi Arabia is going to win. Although no one is sure what is causing the plunge in oil prices from above $105 a barrel this s
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For the two families that govern the Kurdistan Region of Iraq — the Barzanis and Talabanis — the Islamic State’s rampage across Iraq this past summer represented an unprecedented opportunity. Taking advantage of the Iraqi army’s complete collapse, the Kurds captured the oil-rich area around Kirkuk on June 11. Soon after taking Kirkuk, President Masoud Barzani called for a refe
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The recent debate over falling oil prices has become an over simplified economic question of supply and demand, ignoring other interrelated economic theories. Despite the global recession and, oil demand has remained at 90-91 million barrels per day (mbd) over the past 5 years. However, due to the recession, Western nations have slowly reduced their demand. Meanwhile low growth
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In response to what has been discussed on the network forum regarding the reasons for the fall in oil price, it is worth mentioning some important determinants of the price of this commodity. Firstly, the majority of oil trading takes place through the use of Futures or Forward contracts. The price of these contracts are set or influenced by a number of factors such as interes
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