U.S. stock prices rose, hovering near record highs, while crude fell below $80 a barrel for the first time in four years on further signs of a slowdown in China's economy.
Brent crude has fallen more than 30 percent since June 2014, and the Organization of the Petroleum Exporting Countries (OPEC) said demand for its members' oil could drop by about a million barrels per day in 2015 due to the U.S. shale boom.
Falling energy costs, while positive for consumers, have raised concerns about profits of major oil companies and their capital spending, analysts said.
The price of WTI oil around $75/Barrel. This is half the price of oil per Barrel on 2007. While the Temp was 90 F on August 2014, the oil price was $108/Barrel. Today the temp reaches 40F, and the oil is $75/Barrel.
A lot has happened since then. US use of natural Gas and Oil output from shale increased despite falling global prices as drillers become more efficient.
By the end of this winter, prices of oil will be around $50/Barrel or less, a change the world hasn't seen recently in any thing. The revenue will dwindle greatly for the producer Countries, oil companies, buying oil stock on margin, etc and will result in economical difficulties.
Just a thought.
No comments:
Post a Comment