Crude oil has had a very rough 2016 which has seen it given up huge gains. But, economic analysists believe the commodity’s 2016 trading year has actually not been as bad as expected. After all, the 2014 trading year even showed more disastrous sides than 2016 causing investors to believe that this year has not been so bad. To understand why this is the stance of economic experts, you may want to look at the data from 2000 to date.
From 1999 to 2015
In 1999, the commodity had registered many gains. It actually recorded two massive rises which saw it close the trading years in spectacular fashion. In one of the most notable rises, it gained by $11 causing it to end the trading year at $147 in the year 2008 just after the onset of the recession of that year. Although it did register a number of lows in the run up to the recession year of 2008, the commodity still managed to remain stable miraculously. There was always someone to keep within the normal trading zone. Shockingly enough, the commodity managed to remain stable for 16 years by following the same pattern.
But, the year 2015 was unique. The commodity lost all those who used to keep it afloat irrespective of how tough the economic lines were. It was not until the end of 2015 that the commodity found a few supporters and buyers to keep it afloat especially in tough times. In 2016, the supply glut had crippled any chances of a price rise. This led to the commodity hitting record lows of around $40 to $50. With the recent striking of the OPEC deal, it is possible that the commodity may reach fresh highs of around $90 to $100 per barrel.