I don't believe this statement in the article is true. I've seen that oil demand growth rate is down, but not an actual decrease beyond normal seasonal cycles.
Posted on 12/07/2015 6:34:04 AM PST by thackney
The oil price is unlikely to recover next year, according to the boss of the French energy giant, Total.
The price of Brent crude is currently under $43 a barrel, down more than 60% since last summer, while US light crude is trading below $40 a barrel.
Oil prices have not been this low for more than 10 years. And Total's Patrick Pouyanne "doesn't anticipate a recovery in 2016". In fact, he thinks supply will grow faster than demand next year.
He is not alone. Last Friday, Goldman Sachs put out a note suggesting prices could fall a lot further.
"While [we are] forecasting oil prices over the next few months to be near $40 a barrel, or roughly where they are trading today, there could be another 50% to fall," the investment bank said.
Asset sales
Oversupply is the reason for the slump in prices over the past 18 months, largely due to US shale oil flooding the market. At the same time, demand has fallen due to a slowdown in economic growth in China and Europe.
This has hit not just the oil industry, but also oil-exporting countries. Many big oil producers such as Libya, Algeria, Nigeria and Venezuela need an oil price well above $100 a barrel to balance their budgets. With the price down near $40, they are having to sell assets to make up the difference.
Indeed a recent report from US data provider eVestment showed that sovereign wealth funds in the oil-rich Gulf are pulling money out of global fund management houses at the fastest pace on record.
Many of these Gulf states are members of Opec, the group that controls about 30% of the world's oil supply.
Understandably, many are furious that the oil price has been allowed to drop so low.
(Excerpt) Read more at bbc.com ...
It’s really wonderful to feed my car less and me more.
Imagine being known as the Total Boss.
I don't believe this statement in the article is true. I've seen that oil demand growth rate is down, but not an actual decrease beyond normal seasonal cycles.
Saudis are purchasing Americans’ loyalty and assurance we will do their bidding with low prices.
I read this and all I can think of are those thrilling, gas-eating ‘jackrabbit starts’ and cracking the throttle just because Harley.
Come on, summer.
LOL
Yep - paying less for Premium now than I was for Regular some time ago.
The low prices for international oil trade are EXACTLY because of the Saudi Royal family.
They are flooding the market as an economic tool against Russia, which is in something of a financial crunch now. Less cash flow to Russia (which is also a major oil exporter) is the Saudis’ way of hitting back for the Russian defense of the Bashar al-Assad regime in Syria, and the de facto alliance of Russia and Iran. Saudi Arabia, which is locked in a largely unseen and underreported existential struggle between the Sunni (Saudi) and Shi’ite (Iranian) branches of Islam, is still reluctant to commit ground forces to the widening civil war in Syria.
Saudi Arabia is pretty much on the side of ISIS and the Muslim Brotherhood in this fight, but they can’t come right out and say that is what they are doing.
Accursed nest of scorpions, every one.
We have placed ourselves over the Saudi’s barrel by our continued deficit spending and non-stop running of the currency printing presses.
As long as the Saudi’s and OPEC agree to base the petro-trade in dollars, our currency will continue to have some intrinsic value despite our actions, which would normally destroy the value of a paper currency not tied something of intrinsic value (i.e. gold).
Our profligate spending habits have made us slaves to the Saudi’s and we must do their bidding.
It is not just Saudi.
Russia Keeps Oil Production at Record High in November
http://www.rigzone.com/news/oil_gas/a/141897/Russia_Keeps_Oil_Production_at_Record_High_in_November
December 02, 2015
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