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Oil Lost 54% Of Its Value In 2008; Forecast of $76/Barrel In 2009
The global financial crisis has driven down the price of oil in the last four weeks of 2008 from $147.27 a barrel to about $35 a barrel by the end of the year.
The steep decline in price has caused the oil producers the loss of billions of dollars in revenues.
Statistics shows that the consumption of oil in the US has declined by 3.7% in the last four weeks of the year, coupled with an increase in the strategic reserves by one-half million barrels to 318.7 million barrels.
A similar decline in demand has also affected the price of natural gas, which has declined from $12 to $5.60 for 1000 cubic feet.
While natural gas is a friendly energy for the environment, it has the disadvantage o f being difficult to transport and store.
Nevertheless, forecasts indicate that given recent reduction in production decreed by OPEC [4.2 million barrel/day] and the revival of economic activities in some markets, the price will be driven upward to the range of $76 a barrel.
Source: Al-Riyadh, Saudi Arabia, January 3, 2009
Posted at: 2009-01-05
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