Barrel Of Oil Now Costs Less Than The Barrel Itself
Oil is at it’s lowest price maybe not for all consumers around the world, Government’s tend to keep profiting from added revenue from oil and not transfer the benefits of cheap oil to the consumer level. Although the crude oil is rarely transported in barrels, it has become significant because it is a standard unit of calculating the price and production throughout the world.
The oil production has increased astronomically over these last few years and for a very good reason, World is bloated out of proportion and we need oil more and more every year. while the global economy has been sluggish and thus creating a huge gap between the supply and demand gap leaving reserves of major nations overflowing with surplus oil. An oil barrel at the time of this post has hit new lows at 28 $ per barrel making it effectively cheaper than a standard 160-liter barrel. Yes, it is actually true.
The price is expected to drive even lower than 20 $ as Iran’s sanctions have been lifted and it can now sell its cheap oil at any price it can get and even America is using its own oil which it never used before so that decreases in demand from the U.S. — plus Chinese economy is shrinking and even China doesn’t need as much oil as before.
People are now expecting a major decrease in fuel prices as part of the international slump in crude oil’s value. It is just astonishing to see how much money government and fuel retailers are pocketing in this scenario. A liter of oil still costs around 1.2 dollars in many countries, many times the cost price itself.
Oil is cheaper than:
Two large pizzas – cheaper than a barrel of oil. #도미노피자
— Ol' Brandon (@BrandonLockhart) January 13, 2016
It's surely only a matter of time before a barrel of crude oil will be cheaper to buy than a pint in a London pub.
— Derek Murray #2331 (@DerekJMurray) January 13, 2016
A barrel of oil is now cheaper than a two four of beer in British Columbia. via r/Showerthoughts https://t.co/SnE44jKuKW
— shower thoughts (@showerthotbot) January 17, 2016
The way the oil price is going, by the end of this year it will be cheaper to buy a barrel of oil than a sack of maize.
— S01E01 (@GomoLeb) January 12, 2016