Last week the prices of oil (and other commodities) suffered somewhat due to a strengthening of the American dollar caused by last week’s Federal Reserve policy meeting. However, despite the noticeable decrease, the price of oil still didn’t fall to dangerous levels and remained relatively stable.
Now analysts are saying that the oil market is heading towards a stabilization, and is perhaps approaching the resolution of the oil crisis of the past two years. This year OPEC as well as non-members who are oil exporters such as Russia have managed to cut down their production dramatically, which helped alleviate the oversupply on the market for crude oil. As a result, the price of oil went up by 15% in recent months.
American crude oil is currently at around $50.51, while London brent crude oil is trading around the $56 mark. It’s worth noting that oil extraction in the United States was previously affected by a series of natural disasters that hit the North American coastlines.
