I was reading a couple of different articles about the glut of oil in the U.S. According to Ed Morse, the global Head of Research at Citigroup, the price of oil could drop as low as $20. Brian Busch, the Director of oil markets at GENSCAPE seems to think it would be in the $35-$38 range. The article is in the NPR news site under npr.org/2015/03/30/395776212/ with so much oil flowing, U.S may be reaching storage limits. An article by Chris Arnold.
There is also another story about Venezuela is cutting oil subsidies to Caribbean countries as well.
Not to sound like a debbie downer but what would Ecuador do if the prices drop and stay down for the rest of the year? I see that the price of super is still $2.19 here in Banos. What is the determining factor in the pricing of finished gasoline and diesel here in Ecuador. Anybody have any idea? I do know the oil business in West Texas and Eastern NewMexico is about to go bust. They are laying off many brine haulers and have shut down some rigs. People I know who are drillers and tool pushers are now out of work and there is nothing they can do about it. Things like that are not newsworthy, I guess. Thanks for your time. Don Carlos
P.S. a message to ccc. I installed a 5 watt LED and no bats in the barn for a few days now.
Oil prices down to $20?
The government sets the price of gas in Ecuador. It's the same in all cities exept those that sell black market gas in small towns with no legal gas station.
I am not inclined to buy into the doomsday oil price predictions. I am inclined to expect disruptions to the oil supply and distribution in key locations. New wells are still going up in N Dakota. Perhaps the oil industry knows something we don't
Put this link up on a different thread awhile back. Will put the link here as well. When all is said and done the U.S. will be in just fine shape. The outcome for other oil producing countries, especially smaller oil producing countries of OPEC remains to be seen. Also put a inflation adjusted oil price chart going back to 1946, which shows how oil, as any commodity is a cyclical market. Like most commodity markets the cycles tend to be in a bull market for around 15-20 yrs, and then bear markets for around 15-20 yrs.
http://www.financialsense.com/contribut … -u-s-shalehttp://www.macrotrends.net/1369/crude-o … tory-chart
Problem with the oil flow is that refineries have slowed production and here the prices are going back up. So the oil can flow and drop as low as it can, however if it is not being refined it is useless. I live 2 miles from Conoco/Phillips and the Tosoro refineries. They have been laying off and production is very slow.
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