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What
do you think about the current oil prices hoovering around US $50/barrel? Is
this a permanent price, going up, or sliding down?
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Someone has said that the oil markets/equation has been changed. US shale oil and Canadian oil sands have increased significant outputs. OPEC is no longer the main driving force. So we would have surplus of oil in the market unless OPEC cuts their output.
Canadian oil sands and US shale oil wouldn't do so, because they had recently invested heavily [they wanted money back], unless oil price was low they'd slow down development like exploration.
The last correction in the last 6 months in North America in oil sector should be considered as a huge correction or has made oil stocks close to bottom of a recession price.
I guess the oil price would be hoovering around US $50/barrel for a long time as it has been for the last couple of weeks, because OPEC didn't want too low oil price neither. I haven't seen many complain about current US $50/barrel approx. The days for US $100/barrel are over. Perhaps the oil price would be traded at US $75/barrel only if OPEC cut oil production. It's kind of floating without a clear guess, because it is in the hands of OPEC and its members. I guess, US shale oil and Canadian oil sands are firmed on getting money back. Btw, if OPEC cut oil outputs, they wouldn't cut a substantial amount, they'd need money, too. Russia had refused OPEC call to cut output.
Btw, there was another thought about current low price forced by OPEC by increasing outputs. OPEC didn't want renewable energy take off easily, e.g. electric cars or hydro-fuel cell cars. This would cause permanent damage to oil industries.
Lower oil prices would make electric cars and hydro fuel cars less attractive due to higher sale prices and uneconomical in saving of operating costs.
So what do you think about oil prices? I don't want to invest in oil industries as there have been too many news and speculation in this sector going from Middle East to Russia then back to North America, i.e. too much troubles in thinking.
Sources: many articles and discussions. I don't remember where to get those.
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2015-06-19
"U.S. crude settled down 10 cents, or 0.2 percent, at $60.20 a barrel, while front-month Brent crude slipped 75 cents to $64.80 a barrel. The Organization of the Petroleum Exporting Countries pumped at a two-and-a-half year high of 31.22 million barrels of oil per day (bpd) in May, a Reuter’s monthly survey showed."
Oil price is about US $10 more than a month ago, but the gasoline prices have been up substantially. At first it was due to the strike of Chevy's workers at refinery in USA. Thus they came to bid gasoline prices up in Canada.
However the strike was over in March 13, 2015.
Why the gasoline price keeps going up? OPEC also pumps out more oil, which floods the market.
Who are manipulating the oil and gasoline markets?
Source: http://fortune.com/2015/03/13/union-says-tentative-deal-reached-to-end-u-s-refinery-strike/
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During the last federal government by Liberal Party, gasoline price was low, but Canada had surplus. Lower gasoline prices are not the major factor for economy's troubles.
Btw, Notley has fucked up oil industry in Alberta during their difficult time.
Someone has said that the oil markets/equation has been changed. US shale oil and Canadian oil sands have increased significant outputs. OPEC is no longer the main driving force. So we would have surplus of oil in the market unless OPEC cuts their output.
Canadian oil sands and US shale oil wouldn't do so, because they had recently invested heavily [they wanted money back], unless oil price was low they'd slow down development like exploration.
The last correction in the last 6 months in North America in oil sector should be considered as a huge correction or has made oil stocks close to bottom of a recession price.
I guess the oil price would be hoovering around US $50/barrel for a long time as it has been for the last couple of weeks, because OPEC didn't want too low oil price neither. I haven't seen many complain about current US $50/barrel approx. The days for US $100/barrel are over. Perhaps the oil price would be traded at US $75/barrel only if OPEC cut oil production. It's kind of floating without a clear guess, because it is in the hands of OPEC and its members. I guess, US shale oil and Canadian oil sands are firmed on getting money back. Btw, if OPEC cut oil outputs, they wouldn't cut a substantial amount, they'd need money, too. Russia had refused OPEC call to cut output.
Btw, there was another thought about current low price forced by OPEC by increasing outputs. OPEC didn't want renewable energy take off easily, e.g. electric cars or hydro-fuel cell cars. This would cause permanent damage to oil industries.
Lower oil prices would make electric cars and hydro fuel cars less attractive due to higher sale prices and uneconomical in saving of operating costs.
So what do you think about oil prices? I don't want to invest in oil industries as there have been too many news and speculation in this sector going from Middle East to Russia then back to North America, i.e. too much troubles in thinking.
Sources: many articles and discussions. I don't remember where to get those.
--------
2015-06-19
"U.S. crude settled down 10 cents, or 0.2 percent, at $60.20 a barrel, while front-month Brent crude slipped 75 cents to $64.80 a barrel. The Organization of the Petroleum Exporting Countries pumped at a two-and-a-half year high of 31.22 million barrels of oil per day (bpd) in May, a Reuter’s monthly survey showed."
Oil price is about US $10 more than a month ago, but the gasoline prices have been up substantially. At first it was due to the strike of Chevy's workers at refinery in USA. Thus they came to bid gasoline prices up in Canada.
However the strike was over in March 13, 2015.
Why the gasoline price keeps going up? OPEC also pumps out more oil, which floods the market.
Who are manipulating the oil and gasoline markets?
Source: http://fortune.com/2015/03/13/union-says-tentative-deal-reached-to-end-u-s-refinery-strike/
-------
During the last federal government by Liberal Party, gasoline price was low, but Canada had surplus. Lower gasoline prices are not the major factor for economy's troubles.
Btw, Notley has fucked up oil industry in Alberta during their difficult time.
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