InvestorQ : How have prices of crude oil moved in recent times?
Aishwarya Nimbalkar made post

How have prices of crude oil moved in recent times?

seema Upadhyaya answered.
3 years ago

Most prices of crude oil are approximations at a point of time and are subject to constant change. Brent crude touched a high of $150/bbl in 2008 but crashed with the economic debacle. In 2014, the price of Brent crude touched a high of $115 before crashing all the way to $30 in 2016 February. Since then, the price of crude has gone back to $80/bbl and is still in an uncertain zone. Crude prices fell almost vertically since late 2014 when the economics of oil first started changing. The US had invested heavily in extracting shale oil over the last 10 years and that supply was coming into the markets in a big way. At the same time, cars were becoming more fuel-efficient and the era of electric cars was dawning. All this means lower demand for fuel. In fact, Goldman has predicted that oil demand in the world should peak around 2024, which is just about 6 years away. Like gold, the price of Brent Crude as well as the volatility of the commodity is largely determined by global factors. India is still a very small player in terms of crude production, although India is the fastest growing market for oil demand. Currently, India produces less than 15% of her daily oil requirements and the balance is met through imports.