The price of oil has dropped by a whopping 6% in the world oil market. As written by the Wall Street Journal the downward spiral in oil led to the crude oil prices sliding down 7.7% this Friday, their largest one-day drop since July 2015. This has led to the price of a barrel to be $50.42, its lowest level in over a year.
As suggested by experts, this drop may have been a result of the supply of crude oil exceeding its demand. To put this into perspective U.S. crude stockpiles have climbed for nine consecutive weeks. Inventories advanced by 14.9 million barrels in just two weeks. Following is Russia with 11.38 million barrels a day and Saudi Arabia with 10.98 million barrels a day (for Oct 2018).
Due to the previous increase in oil prices, America’s President Donald Trump described that an increase of oil barrels to more than $70 per barrels would lead to a toppling of American economy, thus indicated that he would put efforts into increasing the supply of oil production with the help of Saudi Arabia.
Russia has also increased their oil production in the recent weeks. The three countries in the driving seat of oil production are undoubtedly United States of America, Russia and Saudi Arabia.