Oversupply Driving Oil Prices Down

3 Comments on "Oversupply Driving Oil Prices Down"

Plantagenet on Wed, 18th Mar 2015 3:44 pm 



The oil glut is still getting worse, and the oil price could go down another 20% or more from here.

penury on Thu, 19th Mar 2015 11:32 am 



People seem to be fixated upon over supply as the main problem for the oil build. Every time I mention reduced utilization someone is certain to say “Gasoline sales in the U.S. are up from last year” this may be true but the U.S.is not the world (contrary to American beliefs). The world economy is in a depression, the majority of the people cannot afford oil products even at the “lower” prices. Worldwide manufacturing is being curtailed, and reducing energy usage. It is true that more oil is being extracted than is being sold, but it is mainly a reduction in demand not an increase in extraction which is causing what some call a “glut?”. I think the canary is out of the coal mine and trying to gain our attention.

beammeup on Thu, 19th Mar 2015 1:07 pm 



Pen – if what you are saying is true (oversupply is caused by world wide depression, not increased extraction) then we should be seeing a reduction in global oil consumption. Last I heard, China and India are still growing and US consumption is up, although it’s certainly true that Europe’s economy is down. Overall, I wouldn’t expect to see a reduction in overall global consumption.