Market expects the biggest fall in oil prices in the past 30 years
The development of the situation on the world oil market can lead to the biggest fall in the oil price over the past 30 years, reports the Bloomberg, referring to the forecast of Morgan Stanley’s analysts. Experts point out that the previous fall in the oil prices (in July 2014-February 2015) and the subsequent reduction of investment in the oil production haven’t yet led to a reduction in the oil supplies to the world market.
Moreover, over the past six months, the volume of the oil production in the OPEC countries increased by about 1.5 million barrels per day. In the case of lifting the sanctions against Iran and improvement of the situation in Libya, where civil war is, the influx of new oil on the world market may prevent the growth of the prices. Then, as the forecast states, the recession will last for at least three years - "much worse than in 1986", the RBC writes.