Global Oil Crisis

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Crude inventories fell 3.6 million barrels in the week to Dec. 4, compared with analysts’ expectations for an increase of 252,000 barrels, U.S. Energy Information Administration (EIA) data showed. 

Oil prices slipped and US oil stocks recorded a drop for the first time in 11 weeks on 9th wednesday. Today, The American benchmark is at around 37 dollar. Gasoline and distillate both increased from their previous week levels. Energy stocks were also getting crushed. At OPEC’s meeting, member countries still did not agree on what the new limit should be. Now the US is getting be the major oil producer. However,  EIA’s forecast report which is about world crude oil and liquid fuels production growth shows that OPEC countries will be the major oil producers compare the rest of the world in 2016. In addition, there is an interesting similarity in the movement of oil prices on the graph above, in 2008 (when the global financial crisis happened)  and  in 2015.