Crude drops below 70 dollars a barrel
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Dec 14th, 2009 |
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The crude oil prices have gone down below the support level of 70 dollars to a barrel this week, due to continued uncertainty on global economic recovery. Japan is still facing tough times and deflation has set in already to haunt the new government.
And for it’s part, the US government has said that there are no quick recovery chances for the US economy. Add to this the plan by Iraq to raise crude oil production by 10 times in the next five years, you have the right recipe for crude oil prices to spiral downwards.
Over the next few months, we can expect crude oil prices to remain in the 67 dollars to 85 dollars band.