From the news, you would probably have already heard of the US oil prices crashing below US$0 to US$-37.63 per barrel. Based on what I know, the price of a barrel of crude oil varies based on factors such as supply, demand and quality. Why did the oil price crash? The answer is simple. The current supply exceeds the demand.

The Organization of the Petroleum Exporting Countries (“OPEC”) comprises of 13 member countries which are Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates and Venezuela.

OPEC’s objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry.

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