Global Oil Prices

Wednesday, October 7, 2015

2:56 AM

Increased global supply started putting pressure on

the price of oil (i.e. prices started to decline due to
increase in supply)
Everyone expected OPEC to intervene and cut
production to stabilize oil price.
Saudi Arabia, one of the biggest producers - chose
not to cut production putting further pressure on
oil prices.
Fearing loss of market share by cutting
production

These reduced prices are also putting pressure on

other major oil producers like Russia, Iran and
Venezuela whose cost of production are much
higher in comparison to Saudi Arabia (lowest cost of
production)

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