Extremely cheap oil is back, and it may get even cheaper is a prediction being loudly proclaimed by International Economists.
Crude plunged 4% to as low as $42.85 a barrel on Monday. That’s the lowest price since March 2009 and marks the fifth consecutive day of losses.
This should bring smiles to the faces of many drivers who have watched gasoline prices being lowered twice by the Peter Mutharika led Government.
Statistics from the Reserve Bank of Malawi (Central Bank) have also reflected that Malawi Kwacha is gaining against the dollar and other major international currencies despite the fact that tobacco sales have not started and people have not harvested, as factors which contribute to the gain of our local currency.
A month ago, people were talking about an “oil comeback.” Now that looks like just a mirage. More and more analysts predict prices of $40 or lower, at least in the near term.
“I think the market almost has to have a $30-handle on it before it gets this out of its system,” said Tom Kloza, chief oil analyst at the Oil Price Information Service.
