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5 Reasons Oil Prices Are Dropping
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CommodityPrices
5ReasonsOilPricesAreDropping
ByChrisPedersen|Mon,13October201422:09|
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PRICE
CHG
CHG%
CrudeOil
55.48
0.43
Ethanol
1.664s
0.054
0.77%
3.14%
NaturalGas
3.763
+0.044
+1.18%
Gasoline
1.5694
0.0070
0.44%
HeatingOil
1.9802
0.0215
1.07%
Gold
1198.2
9.5
0.79%
Clickon fordetailedpricecharts.
Quotesaredelayedatleast10minutes.
andinvestingpublicareawaretheyevenexist.TheFreeOilprice.comEnergyIntelligenceReport
givesyouthisandmuchmore.Clickheretofindoutmore.
Asoilpricescontinuetofall,analystsandproducersaretryingtowraptheirheadsaroundthereasons
andidentifyafloorprice.EventhoughcrudebenchmarkslikeBrentandWTIkeepdropping,thecostof
findingoilcontinuestorise.Whataresomeofthekeydriversthathavecreatedthisparadox?
1.TheU.S.OilBoom
Americasoilboomiswelldocumented.Shaleoilproductionhasgrownbyroughly4millionbarrelsper
day(mbpd)since2008.ImportsfromOPEChavebeencutinhalfandforthefirsttimein30years,the
U.S.hasstoppedimportingcrudefromNigeria.
Related:DroppingOilPricesSendShockwavesThrough
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2.LibyaisBack
Selectthereportsyouare
interestedin:
WhoWillbetheBigWinnersinthe
ComingLNGBonanza
Becauseofinternalstrife,analystshaveuntilrecently
assumedthatLibyasoutputwouldhoveraround150,000
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LowOilPricesCouldPointToAMore
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sortedouttheirdisruptionsmuchquickerthananticipated,
HowtoPlaytheComingBoomin
AdvancedFrackingTechnology
producing810,000barrelsperdayinSeptember.Libyan
officialstoldtheWallStreetJournallastweekthatthey
expecttoproduceamillionbarrelsperdaybytheendofthe
WhytheSubseaProcessing
SectorwillSeeHugeGainsinthe
NearFuture
monthand1.2millionbarrelsadaybyearlynextyear.
3.OPECInfighting
Therehavebeennumerousreportsaboutthediscord
InvestmentOpportunitiesin
GeothermalPowerGeneration
betweenOPECmembers,leadingmanytobelievethatOPEC
willnotbeabletoreigninproductionlikeithasdonesointhe
past.TheSaudisandKuwaitishavereportedlybeeninanoil
MachinetoMachineTechnology
A$1TrillionOpportunity!
pricewar,repeatedlyloweringtheirpricesinorderto
maintaintheirmarketshareinAsia.JohnKingston,thenews
http://oilprice.com/Energy/OilPrices/5ReasonsOilPricesAreDropping.html
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16/12/2014
5ReasonsOilPricesAreDropping
OurTopWaterTechnologyPicks
for2013
directoratPlatts,believesthattheSaudiswillnotbewillingto
giveupmarketshareliketheyhavedoneduringprevious
pricedrops.
Enteryouremailaddress
Related:LEGOBowsToGreenpeaceCampaign,Breaks
SendMyFreeReportsNow
NOSPAM:Undernocircumstanceswillwe
EVERrent,sellorgiveawayyouremail
TiesWithShell
4.NegativeEuropeanEconomicOutlook
EuropeanCentralBankpresidentMarioDraghihasleft
Getaninsidelookattheenergymarkets
withourfreeweeklyreportandbenefitfrom
ouruniquenetworkofindustryinsiderswho
willletyouinonthelatesttrendsand
investmentopportunitiesintheenergyspace.
investorsconcernedaboutthecontinentsslowgrowth.
Germanysexportsweredown5.8percentinAugust,stokingthefearsofanxiousinvestorsthattheEUs
largesteconomyhaddoubledippedintorecessionlastquarter.AcrosstheEurozone,theIMFagain
lowereditsgrowthforecastto0.8percentin2014and1.3percentin2015.
5.TepidAsianDemand
Beyondsloweconomicgrowthandcurrencydepreciation,anumberofAsiancountrieshavebegun
cuttingenergysubsidies,resultinginhigherfuelcostsdespiteadropinglobaloilprices.In2012,Asias
topspendersonenergysubsidies,asapercentageofGDPincluded:Indonesia3percentThailand2.6
percentVietnam2.5percent,Malaysia2.3percent,andIndia2.3percent.Indiaisaprimaryexample.
Between20082012,Indiasdieseldemandgrewbetween6percentand11percentannually.InJanuary
2013,thecountrystartedcuttingthesubsidiesofdiesel.Sincethen,dieselconsumptionhasplateaued.
ByChrisPedersenforOilprice.com
MoreTopReadsFromOilprice.com:
DoesThis$1.5BillionShalePurchaseSignalAChange?
TheOilWeapon:ANewWayToWageWar
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Abouttheauthor
ChrisPedersen
MorerecentarticlesbyChrisPedersen
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Leaveacomment
ArtemonOctober142014said:
SothereisnoconnectionwithRussiaatall?AndIranisnotworthmentioning?
DavidHrivnakonOctober152014said:
Youforgot#6,electricvehicles.Withmorethan260,000ontheroadintheUSAthatstartstotranslatetolessgas
needed.IcalculateIamnowsaving$225/monthinfuelcosts.
faradayonNovember072014said:
itsobviouslybecauseoffrackingforthemostpart,akashalegas.
KoyonNovember202014said:
ThemainreasonwhyoilpricesaredroppingistocutthedemandfornaturalgaswhichisRussia'smainexportas
wellasoilfromSyriaandIran.Thisiswhathappenedduringthe80'swhentheUSandSaudiArabiamanipulated
theoilpricetoweakenIraq,aSovietallywhichthenleadtothefalloftheSovietUnion.Whyisthishappeningright
now?BecausetheUSdollarislosingitsvalue.Debtisalmost$18trillion,theAmericaneconomyisheadedfora
collapse,countrieslikeRussiaandChinaarestartingtodumptheUSdollar.Thisiswhythereissomuch
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16/12/2014
5ReasonsOilPricesAreDropping
demonizinggoingonagainstRussia,China,Iran,Syria(ISISbeinganotherexcusetothrowdowntheAssad
government).Sobasically,thisisjustColdWar2.0
psi2u2onNovember202014said:
6)LENR
(electricvehicleswouldbe7thonmylist,wellbelowLENR,whichisthegeniethat'sbeenletoutofthebottle).
MazhaMahmoodonNovember302014said:
Therearetwootherreasonsoffallinoilpricesthoseshouldbegivenweight:
1)Efficienthybridvehiclesandothertechnicaladvancementinautomobilesthatincreasedtheefficiencyfrom20
miles/gallonto26miles/gallon.Hencereduced30%consumption.
2)Mostofvehiclesandindustryhasbeenshiftedongaswhichisnearsubstituteofpetroleumproducts.
MahendraonDecember062014said:
Themainreasonforpricereductionofoilbecause,americaincreasedtheproductionofshalegasandreducedthe
consumptionofcrudeoil.pleasegoogleitabout'SHALEGAS'.
michalsonDecember082014said:
FormefirstreasonisRussia?
RussiagiveasylumtoSnowden.
USAsupporttherevolutionagainst(Russianfriendly)UkrainprimeministerYanukovits
USAsupportsandgiveweaponstorevolutionagainstSyriaprimeministerBasharAlAshand.Sincethisisalso
RussianfriendlyprimeministerandbougthweaponsonlyfromRussia.
USAgovernmentisresponsibleforthetwowarsthatcostthousandoflivesandnowtrytohitoilpricestostrike
RussianEconomy.
SohailsarwarkhanonDecember092014said:
Believeitornotthereasonisdajjalfactor.Theworldwillwitnessmasschangesinthedecadetocome.Changes
likeallsortofmachinerywillstopworkingandmanymorechanges.weareheadingtowardsthisdaybyday.
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