Economic security/ Oil price decline

The current oil price decline can be explained by heavy selling in US future markets which is part of an all-out economic war between the US and countries like Russia, Iran and Venezuela, says financial journalist, Willem Middelkoop.

RT: Falling oil prices are a serious problem for some producers. What hope is there that a solution can be found in Davos?

Willem Middelkoop: We as investors just started to buy oil, given the price decline by 50 percent in just three to four months. I agree oil price should be bottoming out because the market fundamentals do not support current prices. I looked at the latest predictions by the IEA [International Energy Agency] – they claim that total world demand will be around 92 million barrels per day and total world production will be a share of 93 million barrels per day. So there is a very small surplus in the oil market.

Oil price drop is ‘economic warfare against US enemies’