Oil slumps to 18 year low of 22 as more crude tsunami expected
It seems like you're referring to a recent news article about the oil market. Here's a breakdown of what's happening:
Oil prices slump to 18-year low: The price of oil has fallen to its lowest level in 18 years, with Brent crude oil trading at around $22 per barrel. This is a significant drop, considering that just a few years ago, oil prices were above $100 per barrel.
What's driving the decline?: There are several factors contributing to the decline in oil prices. One major reason is the ongoing COVID-19 pandemic, which has led to a significant reduction in global demand for oil. Additionally, the global economy is still recovering from the pandemic, which has resulted in reduced economic activity and lower oil demand.
More crude oil expected: The article mentions that more crude oil is expected to hit the market, which could further exacerbate the price decline. This could be due to increased production from countries like Saudi Arabia, the United States, and Russia, as well as the release of strategic oil reserves by some countries.
Impact on the energy industry: The decline in oil prices has significant implications for the energy industry. Oil-producing countries and companies may need to adjust their production levels and budgets to accommodate the lower prices. Additionally, the decline in oil prices could lead to increased competition in the energy market, potentially affecting the profitability of oil companies.
What does this mean for consumers?: For consumers, the decline in oil prices could lead to lower fuel prices at the pump, which could be a welcome relief for those who rely on cars or other vehicles for transportation. However, it's worth noting that the impact of lower oil prices on the overall economy and inflation is still uncertain.
I hope this summary helps you understand the current state of the oil market!