By TONI ELLINGTON
The downturn in prices per crude oil in 2014 and 2015 has created uncertainty in the industry. The past two months have seen some ups and downs in the market. In late March, for example, prices for U.S. light sweet crude oil increased slightly following the news that Saudi Arabia and its allied had launched air strikes in Yemen. Even though Yemen is not a major crude oil producer, the air strikes caused concerns about disruptions in the prospective oil supply, due to Yemen’s proximity to the Bab el-Mandeb Strait, a major oil transporting corridor.
Despite the downturn in the market for oil and gas, financial analysts and investment bankers believe the oil and gas industry has acted responsibly to prevent major permanent negative impacts. According to Credit Suisse, “Companies are more active in dealing with costs and capital issues in the current environment.”
Crude oil prices began to decline in June 2014, when prices dropped by 50%.
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