Bear Market: OIL
by Devany Serrano
The current price on barrels of oil have caused many pessimistic or rather “bearish” views about oil, and what to foresee in the near future. The price of oil has continued to go down, and continues to tumble down these past few months and this has caused an ultimate low. The oil has been plummeting because the price of oil has continued to get pushed down lower and lower, and the market has not witnessed something like this happen since the last global financial crisis. Crude oil is now down 70% and this has caused much pressure on the price and how it is effecting the economy.
Although many consumers are enjoying the low price of gas, the low price on oil does not necessarily affect everyone in a positive way. This causes a huge supply and demand imbalance for people who are going to be not so self-conscience when they are driving and spending money on gas. However, companies and oil refineries are losing an immense amount of profit, and they are not going to continue supplying the amount of oil that they normally would. As the oil continues to plummet, in return oil producers are going to continue to cut back on their production. Unfortunately, during this time many companies are being battered because of their low profits, and this raises much concern.
As of right now, many analysts feel that the price of oil may continue to plummet, and feel very bearish with regards to crude oil prices. Little by little the prices may continue to devour or possibly even increase, we will just have to wait and see. How do you see oil prices in the near future - are you bullish or bearish?