More bad news has occurred for the oil futures market. Two of the OPEC member nations, Saudi Arabia and Venezuela had met earlier this week to discuss oil futures and global prices. The Venezuelan oil minister and his Saudi Arabian counterpart met to discuss the dire crisis that has been facing the oil market. Iran has recently added to the glut in the oil market by preparing to export large amounts of oil ever since the United States lifted its sanctions and embargos on the country.
Oil on Wall Street
The oil producing world has not reacted very favorably to Iran’s ambition in the global oil market. Wall Street did not seem to bring in any good news for the oil market either. The oil futures have finally plummeted below 30 dollars to the barrel bringing in a very glib outlook to the market. Even though the general global consumption of oil has risen, there doesn’t seem to be a relief amongst the oil exporting nations. Oil futures fell by 3.9 percent by the close of trading day yesterday. Most of the market's futures relied on a potential deal between Venezuela and Saudi Arabia to regulate the oil supply and export rate.
Shale oil still remains in the dominating position in global oil markets, however, experts suggest that the shale prices may soon go down as well. Financial analysts also project that the Chinese economic slump has also contributed to the fall in oil prices. The sluggish growth rate of China has resulted in a lower oil import rate of the second largest economy. This has drastically affected the markets. Market speculations by experts suggest that the rate of oil would remain between 40 – 60 dollars in the next decade.
The oil market slump has been resulting in many lay-offs in oil companies and affiliated industries, however, not much of the world has taken notice considering the growth in the global economy. Even though the oil prices have reduced drastically, the next decade has a sliver of hope for the market. Experts suggest that people have typically associated drop in oil prices as a good thing, however, considering the role oil futures play in energy and global finances, it could have devastating effects. Oil futures fell by 1.29 dollars to the barrel and settled at 29.69 dollars to the barrel at the closing bell.