The merciful slow down in oil was a big relief for Nations highly dependent on energy imports. The fossil fuel responsible for global warming is here to stay. No matter what progress is being made in alternative fuels oil remains the major source.
Well it is a simple global demand and supply game as the Oil Market Report portrays. The increase in production some time back was due to fracking boom in USA, Iraq recovery and production splurge by KSA. Weak economies dithered the upward rise as consumption receded.
Inspite of Iran sanction being no more and the 700000 mpd addition the upward swing is noticeable. This is due to natural disasters, political uprisings and terrorist sabotage in Nigeria. The low prices of crude had encouraged usage in many countries as well as by fast developing Nations like India.
Low prices has also discouraged fracking in the oil fields of Texas in USA. Shale oil production exhibits a catch 22 situation as reduced production in case of low prices would experience an upward swing if prices bounce back sufficiently higher.
From 33$ to present fifty dollars the crunch is being felt but not so much as it was during high prices over 100$ per barrel.
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