Wednesday, November 19, 2014

U.S. Oil Prices Drop Below $75 a Barrel

News of a jump in U.S. oil production sent domestic crude prices tumbling below $75 for the first time in more than four years Thursday, reinforcing investors’ fears of a global supply glut.
Production vaulted past nine million barrels a day last week for the first time since 1986, the Energy Information Administration said.
HEY VLAD ... that Ruble chart on your forehead is looking
like the Oil Price Chart on the right .. hahahaha ...
The U.S., the third-largest crude producer, is quickly catching up to No. 2 Saudi Arabia, as output from shale-oil deposits races ahead of expectations. Russia is No. 1.
Low oil prices are a boon for drivers as well as big fuel users such as airlines, shipping firms and farmers. But they threaten the viability of some energy projects, with companies already scaling back expansion plans for next year.
Growing U.S. production, coupled with reduced demand, is a key reason oil prices have slumped more than 30% since mid-June.
The slump increases the stakes for the Nov. 27 meeting of the Organization of the Petroleum Exporting Countries, the cartel of large oil producers that controls about one-third of global output. But traders are skeptical that the group will cut production and rein in global oil supplies despite slower-than-expected demand growth.
Thursday’s EIA data show that the price drop isn’t forcing widespread cutbacks among U.S. producers either.
U.S. output is “incredibly impressive,” said Michael Loewen, analyst at TD Securities. Domestic production has soared roughly 60% in the last five years as hydraulic fracturing and horizontal drilling techniques have enabled producers to access supplies trapped in shale-oil fields.
Read the rest of the story HERE and follow a link to a related story below:

Putin says Russia prepared for oil price collapse as more sanctions threatened ... Sure you are Vlad!

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