The 2008 crisis was the worst blow of the oil industry in the last two decades and arguably the worst in history. However, with the current trend and economic position, breaking that record is seeming like just a walkover with every sunset. Today, the Oil price is valued at $20.33 at the time of the press.
Since the covid19 pandemic hit the global attention in December, it has been a blood bath for the Oil industry. Few are the days’ Oil price has seen the sunset above the sunrise only to plummet the following day ridiculously.
Just before the 2008 crisis, the price of oil was surging constantly for over a year to hit a peak of $140. This to date was and still is all times high in June 2008. Unfortunately, just like the prices mooned before the crisis, the same happened for the next 6 months to surpass over 3 years of growth.
Even though the prices were recovering bit by bit it has been a struggle. The current economic crisis is not doing it any favors. Just like in the 2008 crisis. the Oil price has been plummeting on the same pattern curve.
Where are the future prices headed?
The oil price seems to be on the verge of setting all times low of about $11. With the current economy shape and the dairy graphical analysis, oil is likely to hit a $10 mark in a months’ time if not less.
Oils dropped by about $10 in January, $5 in February and $20 in March. At $20 currently losing either half what it lost last month or the same percentage as last month means $10 at the start of May.
Countries are going on lockdown and the rest of the world is following the same steps. There is no known cure yet for the coronavirus. Specialists say the peak for the crisis is yet to come. As of when nobody is sure but many say if the pandemic is going to be as bad as the Spanish flu of 1918, the world’s economy has seen nothing yet.
The last time oil was priced at $20 was in 2002. But $2 more down and 1990’s veterans will see familiar figures.