June 13, 2012
“Three possible scenarios could escalate oil prices as high as $440/bbl.”
After an abysmal May, oil prices might be at their low.
From May 1 to June 1 crude oil prices fell 21.8% from $106.50 to $83.23 a barrel, the steepest monthly drop since December 2008.
One week later oil is still hovering around the $83 mark. But why is oil still down?
Oil has also been hampered by weaker than expected economic reports in the United States, suggesting that the world’s biggest economy is still struggling in its recovery.
Also the Eurozone debt crisis has had a strengthening effect on the U.S. dollar, which has helped push oil prices down as the dollar is the global currency for oil.