Posted on 12/12/2014 8:38:48 AM PST by Signalman
A global glut of oil will persist next year, putting further pressure on prices and raising the risk of unrest in some producing countries. That's the stark warning from the Paris-based International Energy Agency, which on Friday cut its forecast for global demand growth in 2015. It now sees demand growing by less than 1% next year.
Oil prices have already fallen by more than 40% in six months, but there's little sign of that stimulating demand yet, or constraining production enough to remove excess supply. "Oil price drops are sometimes described as a 'tax cut' and a boon for the economy, but this time round their stimulus effect may be modest," said the agency, which monitors energy market trends for 29 of the world's wealthiest nations. U.S. crude prices fell again on Friday to around $59 a barrel.
(Excerpt) Read more at money.cnn.com ...
I hope "unrest" means they all go back to what they've been doing for centuries and killing each other off.
Keep their 7th century warring ways in their own part of the globe and leave the rest of us alone.
Of course.....that’s the stock market some win some lose. But when they’re bidding the market down we benefit. When they’re betting on the higher side we lose.
Do you doubt that speculative trading drove the oil price this low this fast?
All this hand ringing here is coming from people who have been profiting off of higher and higher oil prices. They are losing money.....Tough $#!T!!!
There was a time I’d agree with you, but we’re not in that kind of market right now. We are in a place where “wars” not only take place on a battlefield, but with drones, cyber attacks, and economies.
Gone and lost in a deep black whole of the internet are the events that lead up to the market crash of 2008. Everyone was so distressed by our own market crashing...nobody ever really heard that huge sucking sound about 72 hours prior to the crash.
I have no doubt it did!!
we gotta keep paying more to keep the barbarians at bay, apparently
Low Oil Prices Put The World Economy At Risk In The Longer Term
Read more: http://www.businessinsider.com/how-low-oil-prices-could-crush-the-economy-2014-11#ixzz3LiI7L9tz
Some of these countries use oil to repay debt, the question then should be, “Why is OPEC fueling the glut?” There is a serious downturn being orchestrated, but by whom and why?
Sure we’re fracking and if we had the Keystone Pipeline I might agree we’re actually causing the free fall in crude. But, prices drop too far...then fracking is not worth the cost, unless we’re at war.
Look at the last 6 months for these
http://finance.yahoo.com/echarts?s=HAL+Interactive#
http://finance.yahoo.com/echarts?s=RIG+Interactive#
http://finance.yahoo.com/echarts?s=WFT+Interactive#
ping to the Business Insider article.
lot of countries pay for their lifestyles as a result of oil.
Then take in to account what it costs each to produce.
Saudi Arabia about a dollar a barrel. Russia about 55 a barrel. So if the profit is small, puttie can’t be a bully.
But Saudi Arabia can still pay for its stuff.
When Bush was prez oil going up was bad.
With Obama oil going Down is bad.
Gulf Shares Plunge After OPEC as Dubai Declines Most Since 2008
Equity markets worldwide tumbled after the 12-member Organization of Petroleum Exporting Countries yesterday cut its forecast for demand next year to the lowest level in 12 years, raising concern over the strength of the global economy and leaving investors contemplating when oil’s plunge will reach a bottom
OPEC isn't feeding an increase in production, the US is, and to a lesser amount, Canada.
This oil drop will tick of politicians who rely on the inflated oil taxes to fund their pet projects. See Democratic governors scrambling to find new “revenue” sources.
Sounds more like a threat...
Like the left uses about transfer payments -
“if we don’t take your wealth and give it to the underclass, there will be ‘unrest’”.
OPEC is trying to put the US/Canada producers out of business so they can raise prices again.
Funny thing is, we’ve gotten to the point that if they cut production, we just say “fine, we’ll sell more of ours”.
Major oil producing states do not tend to have Democratic Governors. Only two of the top ten.
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