After running up from $33 a barrel in 2008 to $114 in 2011 as global economies recovered, oil prices stalled as global economies softened in 2011. This year, the global economic slowdown broadened, and became more pronounced, particularly in the 18-nation euro-zone and China. And oil prices have been declining more sharply.
Unfortunately, global economic growth is still slowing, showing no signs of turning back up yet. So, it would seem the International Energy Agency is more likely to be correct in expecting oil prices to decline through the first half of next year, than are investors buying the dips on belief that the bottom is in for oil prices.
This article is brought to you courtesy of Sy Harding From The Street Smart Report.