Oil prices have already taken a dramatic fall that’s saved consumers big time at the pump. Last week, crude tumbled below $42 a barrel, down from $100 last year. There is no evidence whatsoever to suggest we have bottomed. You could have $15 or $20 oil — easily,”influential money manager David Kotok told CNN Money.
A further decline to $15 a barrel would be huge. Oil hasn't traded that low since early 1999, when gasoline at the pump was selling for under $1 a gallon. The big problem is the world still has more oil than it needs, especially given China’s economic slowdown. The American energy boom that began last decade created a supply glut. OPEC, led by Saudi Arabia, has been unwilling to balance the market by cutting pr Russia is facing a fuel shortage Russia has lots of oil, but in a weird twist of fate, the nation could soon run dangerously low on gasoline.
The head of Russia’s biggest oil company is warning that the world’s second largest oil producing nation could soon face a fuel shortfall.
The expected shortfall is a result of many factors, including new tax rules, a weakening economy and Western sanctions that are hurting Russia’s oil refining businesses. This is pushing fuel prices up, even as oil prices have plunged. Oil prices have dropped from around $107 a barrel last June to $44 right now, weighing down Russia’s oil-dependent economy.
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