‘Turning Point’: World May Witness Lowest Oil Price Ever in 2016
SputnikNews.com
07.01.2016
Price for crude oil shrunk close to 33 dollars a barrel on Thursday and slumped to its fresh record low in over the decade. Earlier on Wednesday, it sank by more than four per cent – below 35 dollars per barrel – and surpassed its late December fall, reaching the lowest level since July, 2004.
Many analysts say that the recent drop in oil prices can be explained by the stand-off between Saudi Arabia and Iran.
On Monday, Riyadh formally severed diplomatic ties with Iran following Saturday’s attacks on the Saudi Embassy in Tehran and the Consulate in the city of Mashhad. The attacks were triggered by the execution of prominent Shia cleric Nimr al-Nimr by Riyadh.
“It is certainly a big factor behind the drop in oil prices,” Michael Poulsen, Oil Analyst at Global Risk Managemen, told Radio Sputnik.
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