Sunday, February 22, 2015

The recent drop in oil prices has been detrimental to the economies relying on oil drilling across the country. Thirty thousand workers have been laid off and thousands more are expected to lose their jobs. But analysts are unsure if the worst is truly over.

Since oil prices having bottomed out in mid January at $46.59 a barrel, there has been a consistent rebound. But in the middle of February, prices reached the highest price since before the holidays at $62.53. This suggests the free-fall seen in the last half of 2014 is over and most of the jobs that will be lost have already been lost.

This price spike however is in stark contrast to the June 2014 barrel prices of $114.81. And uncertainty is lurking as indications this salvation might not be here to stay. And without any expectation prices will top the magic $100 mark, layoffs are continuing.

With prices already having begun to ebb since the peak, already down over $2, layoffs are very called for and instability is very present. Stability will only return after the combination of stability and an adequate barrel prices to support the industry. Until this change the pink slips will continue and the bleak outlook will loom.