Oil Prices Poised to Fall

October 01 00:00 2011

New York, October 1 (RainbowNewsLine.com) – The commodities market is poised for a major fall after seeing the Bull Run ever since it recovered from the 2008 recession.  Although a falling dollar usually increases the price of fuel, this time it’s not the dollar that’s falling, it’s the economy that issues it that is in jeopardy!

This fall in the prices of oil can be attributed to the fact that economies in US, Europe as well as developing BRIC countries are pretty much under water. Thus there are major spending cutbacks in almost all the developed countries in the world.

It is in these countries that there is a major demand for oil. Since the biggest buyers of the commodity may not have enough money to pay for its purchase, the immediate future of the commodity looks bleak. There is no doubt about the fact that oil is going to rise in the long run unless and until other sources of energy are developed to be commercially viable.

The unrest in Libya and the supply issues that it is likely to cause are the only source of comfort to the OPEC nations which will soon see their revenues as well as sales plummet.