Tuesday, December 30, 2014

Oil prices halved in six months – Haugesund Avis

Oil prices halved in six months – Haugesund Avis


  OSLO: Oil prices have vaket around $ 60 a barrel since mid-December, but fell Monday to below $ 57 a barrel at the lowest. It lay around at 14.30 at $ 57.48.

 Thus the price more than halved from the year peak at $ 115.62, which was reached on 23 June – and the lowest in five years.

 But we will not go further back in time before the oil price normal levels was lower than the current bottom. With the exception of one year, the oil price was on par with or lower than the current in the 14 years from 1995 to 2008, according to a list of the Oslo Stock Exchange.



 30 years since the last

 The price of Brent oil has previously been even higher and had a preliminary peak in spring 2011 at nearly $ 127 a barrel. It marked fall in prices has mainly taken place in the last half year and are largely along with major production in OPEC countries and the United States.

 The last time oil prices halved was in the mid-1980s, when the country was plunged into a deep, serious economic crisis which ended with the banking crisis at the end of the decade and the beginning of the next.

 30 years later seems crucial preconditions for the crisis to have changed. Nobody speaks therefore now about an economic collapse as the late 1980s, although low oil creates concern for the willingness to invest in the petroleum sector.



 Withstands $ 40 a barrel

 This time shows several analyzes that Norway does not need an oil price of more than $ 40 a barrel – far below even the current relatively low level – to balance the budget. It also emerges in a recently published analysis, based on data from credit rating agency Fitch and Citi Research.

 - It is the lowest level for all oil producers rating agency has seen, writes the FT.

 Other countries are far worse off: Iran needs an oil price of $ 135 a barrel, Russia and Venezuela 105 114.50, according to Fitch.

 The arrows pointing slightly downward Norwegian economy next year, but most analysts believe in a soft landing with economic growth, continued wage growth and low unemployment.

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