Here are the reasons oil is plunging toward $50

Here are the reasons oil is plunging toward $50



This is an update on where we are on the price of oil for now and the foreseeable future.  New supply is coming online from northern Iraq and Libya on top of a supply glut that was already present.  Saudi Arabia is prepared to let oil fall to $20 per barrel although it most likely won't fall that far.



In addition, we are having weaker oil demand during the winter, and electric cars are finally make a dent in the gasoline monopoly.  China and Europe have lower demand for oil also.  A stronger dollar equals lower oil prices because more oil can be bought for each dollar.  A weak dollar would result in higher oil prices.