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Monthly Brent spot oil price variations - June 2001-June 2012. (Source: EIA, 2012)

High supply and low demand puts downward pressure on oil price

A combination of a higher supply and lower demand has put downward pressure on the price of oil. By March 2012, a barrel of Brent, the European marker crude, traded at US$125. By the end of June, it was trading at under US$95. Lower oil prices are good news for consumers. For producing countries, however, they mean lower export revenues. How sustainable is the current situation?

OIL reached a record annual average price of US$100 in 2011. In 2012, the global oil market outlook seems to be different. The market is well supplied.

While for most of 2011, oil demand was well ahead of supply, global production in 2012 has so far exceede...

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Dr. Carole Nakhle
The track record of forecasting oil price is poor. Experience shows that oil price movements can be quickly reversed
read more about it in the report
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