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The price of Brent Oil fell to a 4 year low on Wednesday 16th of October 2014 to $ 84. On Tuesday 14th of October, Oil saw its biggest daily fall in more three years after the watchdog slashed its forecast for world oil demand for the remainder of 2014 and 2015.
The Brent oil for November, actually reached a low of $83.37, down $1.67, before rallying and closing at $84.
With the shale oil production bloom just round the corner, the price is set to go lower, due to increase supply, and America reducing their import of Oil. The US shale oil production is set to grow by around 106,000 barrels per day in November.
The big question is how we shift our dependence from oil revenue which happens to be our main source of Income.
We need to take the following steps and measures.
1. Growing of small businesses,
2. Encouraging entrepreneurship in all sectors of the market.
3. Innovation has to be encouraged in schools and Universities, especially in areas of Technology etc. This will lead into the market place.
4. Increasing our Manufacturing and Export, in non-oil products.
These will ultimately help in increasing production and Export, and generate Revenue for the Kingdom.
Now is the time, to change our mind-set, and be creative with our ideas, and start making the shift by reducing our dependence on Oil Revenue.
We have a $748 billion economy, which is the biggest in the Arab world, so we just need to put our thinking cap on and be creative.
By Daniel Joseph.
Financial Market Analyst