Posted on 12/10/2014 5:06:02 AM PST by blam
Adam Rose, Reuters
December 10, 2014
Brent crude remained above $66 barrel on Wednesday, after resuming its drift downward amid a glut of oil on the market, following a short-lived reprieve the previous day when a weaker dollar had provided some support to prices.
Worries about oversupply have pushed Brent down 40% since June.
"Notwithstanding day-to-day movements, the fundamental picture hasn't really changed, and that is one of supply outstripping demand growth for most of the year," said Phin Ziebell, a senior analyst at National Australia Bank.
"It's an incessant march downwards, and it would be interesting to see where it bottoms out, but there doesn't seem to be any sign of it so far."
On Wednesday, Brent's front-month futures contract traded down 71 cents at $66.13 a barrel by 7:25 GMT (2:25 a.m. ET), after falling more than a dollar to $65.78, still above a five-year low of $65.29 touched Tuesday.
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(Excerpt) Read more at businessinsider.com ...
What about propane? Still too high IMO.
Good. That will impact Russia & Iran
Propane is mostly produced from Natural Gas Liquids and not tied to oil prices.
It will go down until it goes up, as it always has. What will collapse are wind and solar powered projects because there is no way they can compete with $40 oil.
Propane is also a bi product of oil refining.
Gas prices rise to $1.89 in 2008 - “Blame Bush and his oil buddies!”
Gas prices drop to $2.51 in 2014 - “Thank you, Obama, our Messiah!”
And with the collapse of wind and solar, hopefully the collapse of the ‘greens’. Hey, I can dream, can’t I?
Good point. Everyone talks about whether the independent drillers will survive but some of these alternative energy suppliers are on shaky ground with this downturn also.
yes, but a much smaller amount.
They really are separate markets as we use so very little oil for electrical power production. Much of what is listed as generated by oil is actually refinery "leftovers" like petroleum coke and residual oil.
It's a shame this happened while Obama was still president :( since he has done EVERYTHING imaginable to try to keep prices high and kill the oil industry. The average Joe will feel this, and eventually give him undeserved credit for it.
Remember peak oil?
Just goes to show how inflated the oil price really was.
Same thing I was thinking, the whole thing is rigged big time.
I remember global warming too.
Indeed. I will also note that in past downturn panics the market has acted like the price of oil was going to zero.
It never has.
Hyperbole we much?
What happens after it gets to zero dollars a barrel? They start paying customers to get it out of the ground?
And how it was going to take 5-10 years of drilling to get the oil to market.
Good thing we started 6 years ago.
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