Opinion: Oil prices

POSTED: 06/21/12 1:08 PM

Is there some relief underway? One would think so, given the fact that oil prices reached their lowest point in the past one and a half year yesterday.

The cause of the dip seems to be the unexpected increase of the strategic oil reserves in the United States. The price for a barrel of Brent oil decreased by 3.3 percent to $92.65.

American oil became 2.6 percent cheaper and trades now at $81.06 per barrel.

The latest policy meeting of the federal reserve, the system of central banks in the United states, put even more pressure on the oil prices. The Fed announced that it will continue its current policy to stimulate the American economy, but it did not announce new policies. American investors reacted disappointed.

Analysts say that the deteriorating situation in Europe plays an important role in the oil price trend. China’s economic growth has slowed down lately as well. all these factors together caused a strong decrease in oil prices.

So now that we know all that, what will happen with the price at the pump in St. Maarten? Cheaper oil ought to lead to lower fuel prices and also to lower energy cost.

Mark the date: on June 20, oil prices reached their lowest point in the past 18 months. we’ll keep an eye on announcements about the effect this will have on the energy prices on our island.

 

 

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