Zambia running out of oil as it gets cheaper on international market

Zambia running out of oil as it gets cheaper on international market

12509343_1080090368708379_7094107785435859650_nFuel shortages is looming as most service stations across the country are running out of the precious liquid. This  photo of motorists lining up for oil was taken from Kabulonga this morning.

By the way oil prices everywhere except Zambia have continued dropping and almost becoming cheaper than water. International media report that there so much oil in the world right now the excess may be stored at sea. But this is the time it runs out in Zambia?

In the next few weeks oil could prices might tumble even further as demand cools while supplies of already-prevalent crude increase as sanctions are lifted on Iran.

With demand from a contracting Chinese economy falling and Iran to resume exports, “unless something changes, the oil market could drown in oversupply,” according to estimates from the International Energy Agency. Though supply from non-OPEC countries is expected to drop by 600,000 barrels a day in 2016, Iran’s re-entry into the market is expected to make up for that decline by midyear.

On Monday, the price of Brent crude fell to $28 a barrel, a 12-year-low, after sanctions were officially lifted on the Islamic Republic Saturday, in accordance with successful negotiations to put the breaks on its nuclear program, according to Bloomberg.

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