Starting since last months of 2014, crude oil prices have been declining. Peaking up to $115 per barrel in last June, now the oil prices downed to around $43 per barrel. In June 2014, the price of Brent crude was up around $115 per barrel; in January 2015, it had fallen under $50 per barrel.
As an indispensable source of energy predominantly for transportation and mobility sector, oil is being used since being discovered in many industrial sectors.
Since early 1970s, the prices of oil surge steadily and in the economies of nations it had been a foremost component.
During the last century oil has been also source of welfare for the oil rich countries.
Meanwhile, the countries which do not possess this resource suffered economic trouble regarding high prices. However, all of oil rich countries could not benefit sufficiently from their oil reservoirs.
One of the most striking examples of the oil rich countries which have been exposed to strife and war is unfortunate Iraq. Especially invasion of the coalition forces in the US-led; Iraq could not use its oil resources sufficiently and efficiently in last decade in the direction of its people...
A few reasons are shown in oil declination, oil shale and oil sands, as well as renewable resources.
High prices urged the companies in the US and Canada to drill shale formations and oil sands. Also demand for oil in places like Europe, Asia and the US began tapering off regarding weakening economies and new efficiency measures.
Another reason is global warming and climate change which is attributed mostly to the fossil fuels, mostly to oil. So, in recent years, renewable energies have been on the agenda.
Especially, sources of solar, wind and hydrogen energies have been increasing in recent years. These are regarded as the energy of the future both clean and cheap.
Either featuring its high price or pollutant for the environment, for this reason electric mobility is going to favorite across the world.
Production and demand in electric vehicles are flourishing with every passing year. Every country has scheduled to increase the number of electric vehicles especially in public transportation in terms of being green, clean and cheap transport.
Now low prices are excellent for oil consuming countries, but this declination is different for the oil producing countries especially Russia and Venezuela. According to OPEC’s statement, the largest oil cartel of the world, it would continue production 30 million barrels a day for first six months of 2015 and then it would evaluate the market in June meeting.
The plummeting price of oil is still the biggest energy message in the world right now; it is bringing back cheap gasoline to the oil-poor countries while wreaking havoc on oil-producing countries like Russia and Venezuela.
In conclusion, how long the oil prices would fluctuate seemingly is not clear, but conjecture of the world, sources of renewable energies and new technologies might urge the oil prices unstable in the future.