The Price Of Oil Has Fallen Below That Of The Barrel Itself
This is the tale of two barrels: one is completely empty, the other full to the brim with oil. But here’s the twist: the black gold’s value has declined to such an extent that the price of the empty metal container is today worth more than the oil itself.
Yes, you read it correctly: an empty barrel now costs more than the oils that fills it, reports The Independent.
On during January, the price per barrel fell to 28.46 dollars (around £20.32) before further declining to 27.45 dollars on Thursday 21 January in New York. In June 2014, the price of a barrel of Brent crude oil was around $110, constituting a decline of 75%.
A barrel of oil holds 159 litres or 42 American gallons. While the container is today just a unit of measurement – as the oil is transported in tankers from the point of its extraction to refining – it is still an interesting observation.
So what is the reason behind such an extreme deterioration in prices? According to RTE, this is down to “oversupply, overproduction, weak demand and a slowdown in the global economy, especially China”. Adding to the problem is Iran’s return to the market following the lifting of sanctions against the country amidst nuclear weapon fears.
Source: www.konbini.com
