The dramatic crash in crude oil prices just got even more stunning.
Oil plummeted below $30 a barrel on Tuesday for the first time since December 2003. The latest wave of selling leaves crude oil down 19% this year alone. It represents an incredible 72% plunge from crude oil's June 2014 peak of almost $108.
"The fundamental situation for oil markets is much worse than previously thought," Barclays commodities analysts wrote in a client note.
It's great news for American drivers. The average price of a gallon of gasoline fell below $1.97 this week, compared with $3.68 about 18 months ago, according to AAA.
Here's why crude oil prices keep crashing lower:

1.) OPEC in complete disarray: Oil prices initially rallied on Tuesday after Nigeria's top oil official and the outgoing OPEC President Emmanuel Kachikwu told CNN the oil cartel is considering an emergency meeting. That fueled hopes of an output cut that countries like Nigeria have been begging OPEC leader Saudi Arabia for.
However, officials from the United Arab Emirates quickly moved to downplay those hopes, saying the current strategy is working.
The public back-and-forth between OPEC members highlights the deep fractures within OPEC that have diminished the already-low chances of the cartel cutting output.
The recent outbreak of tensions between Saudi Arabia and Iran did much of the same last week, helping to drive oil prices even lower.
Barclays calls all of this the "complete breakdown of OPEC cohesion."

2.) China is spooking everyone: Worries about China's economy aren't just bad for the stock market.
If China is truly slowing more than investors realized, that would mean it needs less oil to fuel its economy. That's a scary thought for those who were hoping oil would soon be on the upswing.
"Just in the past week, strong fears of a hard landing in China have reemerged with a vengeance," Michael Wittner, global head of oil research at Societe Generale, wrote in a research report.

3.) Defiant U.S. oil production: While demand fears are on the rise, the oil crash has mostly been fueled by a massive supply glut. That excess supply was largely created by the American shale oil boom.
U.S. oil production has not taken nearly the hit that many thought it would. The U.S. pumped an average of 9.35 million barrels per day in October, down just a bit from the April peak of 9.7 million, according to the government.
That hurts oil prices because American production likely needs to come down to ease the supply glut.
"The market has lost confidence that U.S. shale will decline quickly enough to perform its job this year of beginning the global rebalancing process," Wittner said.
Related: $320 billion to disappear from oil budgets

4.) Iran is gearing up: The global oil market is bracing for Iran to deepen the supply glut by pumping lots more oil very soon.
Iran is making progress in meeting its obligations to receive sanctions relief under its nuclear deal with the West. That potentially clears the way for Iran to return later this month or in February.
It's a big mystery just how much oil Iran will be able to pump, but it's unlikely the country will back down despite the price crash. Even just a gradual increase in output can't help the oversupply problem.
Related: OPEC is at war -- and it's sending shockwaves around the world

5.) U.S. dollar strength a risk: Crude oil trades in U.S. dollars. That means when the dollar gets stronger, oil gets more expensive for overseas buyers.
That's why Morgan Stanley warned on Monday that the strong greenback could send oil plunging to $20 a barrel.
While cheap oil is great for American consumers, it continues to contribute to the losses in the stock market. Shares of S&P 500 energy companies are already down 10% so far this year, while some like Marathon Oil (MRO) and Anadarko Petroleum (AEUA) have plunged over 20%.


http://money.cnn.com/2016/01/12/investing/oil-prices-below-30/index.html

cc:LalasticlaLa

Oil will hit $25 in 2016.

Nigeria's budget deficit will hit N3trn in 2016.

Nigeria's external debt will hit $11b in 2016, up from $6b in 2015.

Nigeria will use N2tr to settle debt interest in 2017, up from N1tr in 2015.

By the time Buhari and APC is done with Nigeria, even Aisha will not have enough rice to feed the zombies.

PS: Saudi Arabia and UAE are reducing welfare funds for their citizens by as high as 50%, while Nigeria wants to increase ours from N0 to N300m. #misplacedpriorities

PPS: APC Chanters said NOI's qualifications were useless. Please, what should we say about Adeosun?

-Lord

Good. Oil gradually returning where it came from.

Chai. This will finish Nigeria.

American greed continues to hurt the world. 'Preciate it.

Good news

Good news


God please make governance so economically unappealing that only those who are ready to serve in truth and in honesty will be at the helm of affairs from Ward Counselors, Local Government Chairmen, State House of Assembly Members, Governors, Federal Legislators, Ministers and the President.

Let only those with the brain smart enough to create wealth through diversification of the economy be in power. Instead of these beggar leaders who wait for oil money and are so brain dead to create wealth and an enabling environment for investors in their States. The Abuja allocation Governors. Security vote Governors.

If this is what it will take for Nigeria to get it right then let crude oil be 5 Naira for 25 litres just like buying water from ''Mama Olomi'' on my street.

There are other Countries who have never earned a dollar from the sales of crude but are not worse off than us!

It has always being my prayer for the crude oil to worth nothing so that the so-called southern Nigerian minorities can ascertain the level of their foolishness. These certain minorities of the southern Nigeria have been egged onto idiocy by the Yari.ba while the latter have connived with the northern region of Nigeria to corner the dividends of the crude oil resources for themselves. If people think Nigeria is bad now, they should simply wait when the fuel that runs the economy of the zoo is sourced primarily from the western and northern Nigeria. The call to divide Nigeria will be louder and clear mixed with religious intolerance. The present animalistic talk that we all are brothers and sisters will disappear. I simply cannot wait.

The best news!!! Anything that will bring this contraception to her knees is my darling...