Why Oil Prices Could Go Even Lower

7 Comments on "Why Oil Prices Could Go Even Lower"

Nony on Tue, 28th Jul 2015 7:58 pm 



Mindless blather.

Plantagenet on Tue, 28th Jul 2015 8:34 pm 



The world is in an oll glut. Its quite possible that oil prices will go still lower before market equilibrium is restored.

BC on Tue, 28th Jul 2015 9:04 pm 



I have a technical target for WTI at $32, but that will probably coincide with global recession.

More “glut” please.

Plantagenet on Tue, 28th Jul 2015 10:27 pm 



@BC

One global recession coming your way. China is going down and UPS just announced their data shows the US economy is noticeably slowing.

apneaman on Tue, 28th Jul 2015 11:32 pm 



Chevron to cut 950 jobs in Houston, 1,500 companywide

http://blog.mysanantonio.com/atlarge/2015/07/chevron-to-cut-950-jobs-in-houston-1500-companywide/#34195101=0

BC on Wed, 29th Jul 2015 11:20 am 



Plant, my own cyclical work strongly suggests that the US economy stalled coincident with the onset of the crash in the price of oil (particularly the energy, energy-related transports, and industrial sectors), and that private final sales per capita have decelerated to a recession-like rate in Q4 2014-Q1 2015 not unlike in winter-spring 2008 and spring-summer 2001.

The pattern looks a lot like 1986, but we have record debt to wages and GDP; real GDP is growing at half the rate; real wages for the bottom 80-90% are flat to negative (and worse after debt service and illth care costs); there are unprecedented debt-induced asset bubbles everywhere; and we are laboring under Gilded Age- and Roaring Twenties-like wealth and income inequality with a record low for wages as a share of GDP.

The stock market, CEOs/CFOs, the Fed, and virtually ALL eCONomists missed the cyclical turn, as always.

I suspect history is rhyming yet again.

shortonoil on Wed, 29th Jul 2015 1:03 pm 



As petroleum’s ability to power the economy declines, the economy’s ability to pay for it declines:

http://www.thehillsgroup.org/depletion2_022.htm

The price of petroleum has now dropped to a level where its full life cycle production cost can not be recovered. Producers can no longer afford to replace reserves that are being extracted.