Falling crude oil prices tricky for Kenya

In the past few weeks, oil prices have been on a downward trend, hitting their lowest levels in the past four years. Oil prices have declined more than $30 per barrel since the mid-June high of $115 per barrel.

The decline in the crude oil prices can be attributed to a number of factors. Higher supply in the US and a slowing demand because of worries about global economic slowdown are the underlying causes. But the immediate cause of the downward trend was Saudi Arabia's reduction of its crude oil prices without cutting production.