Oil prices up and would go down

Oil prices up and would go down

Dr. Jassim Taqui

In a surprise trend, the oil prices climbed to $51 per barrel amid turmoil in Nigeria. This rise in oil prices has benefited all countries    . Now, the US companies involved in shale oil would be back in business. More production of shale oil would increase following decline by 3.2 million barrel.

Similarly, Russia, Iran and Saudi Arabia will gain. Thus, the Saudi attempt to increase production to harm the economies of United States, Russia and Iran has gone with the wind. However, there is a twist in this rise of oil prices.

The rise in oil prices would inevitably make all oil producing countries increase their production. Thus, there would be a glut in oil market. And according to the principle of supply and demand, the oil prices would start to crumble again. The oil prices might even fall to $ 20 per barrel.