Brent Crude is now selling for well under $70 a barrel. Some prognoses suggest that in the middle of next year oil will recover to slightly over $85 a barrel, while others suggest prices will be less than $60 a barrel.
Clearly oil is in over supply right now and oil buyers must be buying oil from wells controlled by the Islamic State of Iraq and Syria. It is very hard to understand why sanctions and preventative action cannot be taken against ISIS, who sell oil for around $28 a barrel and use the money to finance their war.
Although oil prices have fallen massively in the past six months there is no sign of petrol and diesel pump prices showing an equivalent fall, after taking into account the various taxes levied on it.
As there is an over supply many oil producers, like BP, are closing wells once profitable and making some employees redundant.
Nothing lasts for ever, especially low fuel prices and by the end of 2015 I expect oil prices to have fully recovered and risen.