Analysts project USD 50-60 oil prices for 2017. According to the projections, oversupply will continue in the black gold market during the year, though it will drop lower than the 1-2 million barrel daily surplus observed in earlier years. Consequently, and in accordance with the subsequent growth of the global economy the current, approx. 96 million barrel, daily demand is forecast for the coming years to be 98 million barrels in 2017 and 100 million barrels in 2018.
The extreme fluctuation of crude oil prices over the past few years can be explained by simple economic theory and not with some secret political event or the speculation of the financial markets. The bare truth is that the more than thirty-year trend came to an end in the second half of 2014. Since 1981 there has been no year in which more oil was extracted across the world in a day than could be sold. The 1-2 million barrel daily excess demand, observed for decades, has become a 1-2 million barrel oversupply in just a few months.
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