Oil Price is Going From Bad to Worse

Oil price continued its collapse in the last hours, and the barrel of Brent reached $ 33.84, the price that economic experts said it will collapse further in 2016, to less than $ 30.

“Right time has come for the government to forget the wealth of fuels and this time it should seriously look for new revenues to feed the 40 million Algerians and to fund the budget.”

“Reuters” reported on Friday, that the price of the global crude oil Brent crude nine cents will reach $33.84 a barrel, and will remain close to the levels which it reached in July 2004.

“Over the last year, the global production volume of oil consumption reached 1.5 million barrels per day, and OPEC and the International Energy Agency expected a slow global demand growth in 2016 to between 1.2 million and 1.25 million barrels per day from 1.8 million barrels per day in 2015.”

Economist Kamal Rezzig told Echorouk that all indications suggest that the oil price will not improve during the next phase, and could see the largest decline of less than $ 30, in light of the rising supply and falling demand. Even the war between Iran and Saudi Arabia will not revive the international oil market.

“It is time for the government to remove from its mind the idea of dependence on oil and should look for new alternatives for the next phase.”