Global oil prices at 2-year lows

The price of crude oil has fallen to its lowest level in over two years in line with current economic conditions. Oil prices have been trending down since mid-June this year, when Brent crude was priced at around $115, to around $95 per barrel today. It will be nearly a month that Brent crude is trading below $100 per barrel. Prices hovered around the $110 level for half a decade following the global financial crisis. In that period, the barrel of Brent oil traded below $100 only for a few days in two short periods of time in 2012 and 2013. The recent dip reflects an adjustment in the misbalances in the oil market rather than a reduction in geopolitical risks. Compared to the start of the year, global oil supplies have increased considerably, and the glut of oil has driven crude oil prices down. According to the US Energy Information Administration (EIA), global supply of crude oil and liquid fuel reached all-time highs of 92.6 million barrels per day in August, according to arabnews.com