Posted on 12/10/2015 8:10:25 AM PST by bananaman22
Oil futures prices are below $38 but there is a glimmer of hope in EIA’s Short-Term Energy Outlook (STEO) released today–world consumption increased in November and supply fell.
OPEC did what everyone expected last week–nothing–and oil markets reacted badly. Brent futures fell 15% from $47.44 before the OPEC meeting on Friday (December 4) to $40.25 today (December 8). I have been saying that oil prices have been too high based on fundamentals and need to move lower in order for oil markets to balance.
Now we may be seeing the beginnings of that trend. In November, world liquids supply fell 190,000 bpd and consumption increased 320,000 bpd
(Excerpt) Read more at oilprice.com ...
I filled up at GetGo yesterday. Paid 55.9 cents a gallon. They have a deal with the supermarket chain Giant Eagle.
Please do not post this stuff. I’m still buying oilfied service company shares. Arrggghh.
The SHORT-TERM ENERGY OUTLOOK by the Energy Information Administration doesn’t track Global Supply and Demand by month, but by year and quarter.
http://www.eia.gov/forecasts/steo/report/global_oil.cfm
Hard to claim they reported a change for the month of November, when that data is not in the report.
Prices have monthly values, but not supply and demand.
Wishful thinking on someone’s part.
The BDI has collapsed. There is no global demand for oil.
EIA expects global consumption of petroleum and other liquids to grow by 1.4 million b/d in both 2015 and 2016
From where? The whole globe including China is in a slowdown. We are likely heading for a global depression. I’m not seeing it getting better anytime soon.
for crying out loud- there was a big long article yesterday explaining how the Saudi’s were attempting ot crush US frackers and how oil prices were ‘very likely’ to drop to $20 or so dollars a barrel
Yesterday = “Oil prices to drop sharply
Today = Oil prices to rise again
Tomorrow = Oil prices to remain the same for the next 6 months
Consumption of petroleum and other liquids in countries outside the Organization for Economic Cooperation and Development (OECD) increased by 1.4 million b/d in 2014 and is projected to grow by 0.8 million b/d in 2015 and by 1.1 million b/d in 2016. China continues to be the main driver of non-OECD oil consumption growth, despite the slowdown in the country’s economic growth that began in the second half of 2014. China’s liquid fuels consumption growth is forecast to average 0.3 million b/d in 2015 and in 2016, below the 0.4 million b/d growth in 2014.
After falling by 0.3 million b/d in 2014, OECD petroleum and other liquids consumption is expected to rise by 0.6 million b/d in 2015 and by 0.3 million b/d in 2016, reaching an average of 46.7 million b/d, the highest annual average level of OECD consumption since 2010. U.S. consumption is expected to grow by an average of 0.3 million b/d in 2015 and by 0.2 million b/d in 2016. In 2015, economic conditions improved in several OECD countries in Europe and Asia as they emerged from recessions, contributing to oil demand growth. Also, colder-than-normal weather in OECD Europe in early 2015 contributed to a forecast 0.3 million b/d increase in 2015 oil consumption. Consumption in OECD Europe is forecast to increase by 0.1 million b/d in 2016.
Russia is the biggest looser in this drop of oil prices.
It was big factor in the fall of the Soviet Empire.
Is this a redux?
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