Oil Prices-Good for some !!

 

 

Global oil prices have fallen to their lowest level in more than two years after Saudi Arabia cut its official selling price in a move to protect its market share, analysts said.

Higher output in the US, together with forecasts of lower global demand by IEA, are driving prices down. Brent crude fell to $93 a barrel, its lowest since June 2012. US light crude fell to $85 for the first time in 17 months.

"This is a structural change in the oil market, with Saudi Arabia explicitly stating that they are to compete on price," said Bjarne Schieldrop, an analyst at SEB.

The extraction of shale oil in the US has increased the country's production of oil significantly - the IEA has forecast that the US will soon overtake Saudi Arabia and Russia to become the world's biggest oil producer.

Analysts suggested that the price lowering is intended to bankrupt ISIL in Syria.  ISIL  can't sell oil to Turkey so revenue decreased and Air strikes prevent their parade of armored vehicles in the open as a result.  The Air Campaign caused ISIL big imbalance and have no way to recover.

Just a thought.