Environment & Energy
Related: About this forumCrude Oil prices drop ~40% as World Production increases 1% and inventories increased 0.8%..Whaat???
The International Energy Agency indicates that World Crude Oil production has gone up almost 1% from the Second Quarter of 2014 (92.77 MB/D) to the Third Quarter of 2014 (93.62 MB/d). https://www.iea.org/oilmarketreport/omrpublic/
the Energy Information Administration indicates in their Short-Term Energy Outlook - Nov 2014 (click on "Table 3a. International Petroleum and Other Liquids Production, Consumption, and Inventories" - or - "All Tables" at the top of the page) that:
End-of-period Inventories (million barrels) for OECD Commercial Inventory was at 2,661 for Nov 2014 (estimated) and at
2,640 as of June 2014 for an increase of .8%.
Yet the price for Crude Oil (Brent) has dropped about 39% since end of 19 June of this year. (19 June 2014: $115.14 to $70.67 (note Bloomberg's udates oil prices continuously so this price can change)
So apparently, this ~40% price drop is due to anticipating the impact of OPEC keeping production at the same levels while World oil demand is declining. This shows the impact of traders/speculators in Oil - or in any other commodity (like food crops) - on the price of that commodity. At this point in time, World Crude Oil Production has risen about 1% over what it was in the second Quarter and Crude Inventory for the OECD countries has risen over the same time period a whole 0.8%!
FBaggins
(26,731 posts)That's actually pretty substantial... particularly when they anticipate further supply growth in the coming months.
Warren Stupidity
(48,181 posts)Their goals are to 1. wreck shale oil production and 2. kick the Russians and their Shiite allies in the nuts.
louis-t
(23,292 posts)Citi is panicking and telling it's customers that oil has "bottomed out" and to keep buying oil futures. Hence, there was a slight boost in prices. It won't last.