What are the main factors behind crude oil dropping?

What are the main factors behind crude oil dropping?

Dec 02.2014

Crude oil prices dropped sharply hitting 65$ per barrel, the lowest level in five years due to recent OPEC decision which has maintained its production at 30 million per barrels,which could result an over production (about 700,000 barrels per day in 2015).

In fact , Russia, the largest oil producer in the world, was he most affected country by low prices of the oil as more than half of its budget is based on oil production.

However, according to the economists view, in order to restore the balance to the oil-producing countries, oil prices have to be around 100$ per barrel.

So, we expect the continuation of the bearish wave and traders are actually awaiting the release of new data concerning the U.S. weekly report of oil inventories in order to measure the demand levels  of the biggest oil consumer in the world.

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