Oil price drop reflects new realities

摘要

The oil price fell in October below $90/barrel for the first time since June 2012. Its descent then to that level was short-lived, lasting no more than three days. The drivers then as now were weakening economic data from the Eurozone and China, combined with a revival in Libyan crude output. Both Iraqi and US crude production were also reaching high levels and Saudi Arabia had not curtailed its exports, which it had increased to compensate for the earlier loss of Libyan volumes.