the price of oil started to drop on december 23, 2008.
the price of oil started to drop on december 23, 2008.
when did the price of oil start to drop?
december 23 , 2008
in the middle of the financial crisis of 2007–2008, the price of oil underwent a significant decrease after the record peak of us$147.27 it reached on july 11, 2008. on december 23, 2008, wti crude oil spot price fell to us$30.28 a barrel, the lowest since the financial crisis of 2007–2008 began. the price sharply rebounded after the crisis and rose to us$82 a barrel in 2009. in july 2008 oil reached a record peak of us$147.27 but by february 2009 it sank beneath $40 a barrel. on 31 january 2011, the brent price hit $100 a barrel for the first time since october 2008, on concerns about the political unrest in egypt. for about three and half years the price largely remained in the $90–$120 range. in the middle of 2014, price started declining due to a significant increase in oil production in usa, and declining demand in the emerging countries. the oil glut—caused by multiple factors—spurred a sharp downward spiral in the price of oil that continued through february 2016. by february 3, 2016 oil was below $30— a drop of "almost 75 percent since mid-2014 as competing producers pumped 1–2 million barrels of crude daily exceeding demand, just as china's economy hit lowest growth in a generation." some analysts speculate that it may continue to drop further, perhaps as low as $18
price of oil
the supply of oil is dependent on geological discovery, the legal and tax framework for oil extraction, the cost of extraction, the availability and cost of technology for extraction, and the political situation in oil-producing countries. both domestic political instability in oil producing countries and conflicts with other countries can destabilise the oil price. in 2008 the "new york times" reported, for example, in the 1940s the price of oil was about $17 rising to just over $20 during the korean war (1951–1953). during the vietnam war (1950s1970s) the price of oil slowly declined to under $20. during the arab oil embargo of 1973—the first oil shock—the price of oil rapidly rose to double in price. during the 1979 iranian revolution the price of oil rose. during the second oil shock the price of oil peaked in april 1980 at $103.76. during the 1980s there was a period of "conservation and insulation efforts" and the price of oil dropped slowly to . it again reached a peak of c. $65 during the 1990 persian gulf crisis and war. following that, there was a period of global recessions and the price of oil hit a low of before it peaked at a high of $45 on september 11, 2001 only to drop again to a low of $26 on may 8, 2003. the price rose to $80 with the u.s.-led invasion of iraq. by march 3, 2008 the price of oil reached $103.95 a barrel on the new york mercantile exchange.
price of oil