Additional shale oil supply from the US has upset the demand-supply balance in the oil market.
Once confronted with lower crude prices and lower revenues, OPEC members decided to increase production thereby effectively ending the cartel. The gulf countries might be worried, but the rest of the world is rejoicing.
Topic: The reason that crude oil price crashed - page 9. (Read 12472 times)
The price is being moved down to punish Russia for what's going on with Ukraine.
Sanctions + low oil price makes for the Russian economy collapsing, if and when they fall into line, then the price will magically rise again, but I'm sure the press will attribute it to something else.
Sanctions + low oil price makes for the Russian economy collapsing, if and when they fall into line, then the price will magically rise again, but I'm sure the press will attribute it to something else.
This is also definitely true.
The price is being moved down to punish Russia for what's going on with Ukraine.
Sanctions + low oil price makes for the Russian economy collapsing, if and when they fall into line, then the price will magically rise again, but I'm sure the press will attribute it to something else.
Sanctions + low oil price makes for the Russian economy collapsing, if and when they fall into line, then the price will magically rise again, but I'm sure the press will attribute it to something else.
This is also definitely true.
The price is being moved down to punish Russia for what's going on with Ukraine.
Sanctions + low oil price makes for the Russian economy collapsing, if and when they fall into line, then the price will magically rise again, but I'm sure the press will attribute it to something else.
Sanctions + low oil price makes for the Russian economy collapsing, if and when they fall into line, then the price will magically rise again, but I'm sure the press will attribute it to something else.
The reason oil prices have come down is because OPEC has cut prices arbitrarily. They were artificially high to begin with. On average it costs an OPEC nation ~$30 to produce a barrel of crude. They're still making a shitload of profit.
Oil Demand is going down so prices are going down.
Guess who will pay this?
No one...
Their creditors will get their assets and sell them off to other companies. That's how bankruptcy works. Unless the government takes the company into receivership and/or bails them out.
The reason oil prices have come down is because OPEC has cut prices arbitrarily. They were artificially high to begin with. On average it costs an OPEC nation ~$30 to produce a barrel of crude. They're still making a shitload of profit.
Yes OPEC makes profit. But many countries depend on that profit. They organize education, .... with that money.
Reason why oil price come down is not opec is companies in USA using that new technology to get oil. But that is expensive method and at some point those companies will close. Opec is smart and will not try to maintain price artificially high. Lets teh market do and take off those that produce with to big costs.
Those companies took loans in banks. And when they will bankrupt and will not be able to pay off debts. Guess who will pay this?
The reason oil prices have come down is because OPEC has cut prices arbitrarily. They were artificially high to begin with. On average it costs an OPEC nation ~$30 to produce a barrel of crude. They're still making a shitload of profit.
sooner or later the house of cards is coming down
I think most of the QE money did not reach real economy, they went into crude oil instead (oil is also a good store of value). So now when QE has stopped, suddenly the oil market lose the continuous injection of QE money and crashed
Unlike housing, the oil crash does not hurt average consumers, but oil exporters. FED does not have to bailout those oil companies. However, the crashing oil price indicated that there are much more goods/services than dollar, so those extra oil will compete for the limited USD liquidity on the market and drag the price of everything else down in the process. Maybe eventually FED have to restart the QE again
Unlike housing, the oil crash does not hurt average consumers, but oil exporters. FED does not have to bailout those oil companies. However, the crashing oil price indicated that there are much more goods/services than dollar, so those extra oil will compete for the limited USD liquidity on the market and drag the price of everything else down in the process. Maybe eventually FED have to restart the QE again
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