According to Bloomberg:
Oct. 27 (Bloomberg) — Crude oil fell to a 17-month low in New York as plunging stock markets heightened concern that a global recession will slash fuel consumption.
Energy prices also dropped as the dollar rose to the highest in more than 2 1/2 years against the euro, dimming the appeal of commodities as a hedge. OPEC may make an additional output cut if its Oct. 24 decision to lower production fails to bolster prices, said Mohammad Ali Khatibi, Iran’s representative to the group, according to the country’s state-run Mehr news agency.
OPEC Cut
Oil is heading for a 37 percent drop this month, the steepest since at least 1988 in New York, as the Organization of Petroleum Exporting Countries cut oil production for the first time in almost two years. The 13 OPEC nations agreed to reduce supply by 1.5 million barrels a day starting in November.
- I took a very long leave since last Wednesday and I do apologize for the lack of updates recently…but I am back! I just visited a company that distribute electric scooter and it may revolutionize how people travel in Singapore.
Looking at what the OPEC is hinting, they are about to cut more oil supply due to the non-reaction by the market by the recent announcement of oil supply cut of 1.5 million barrels PED DAY Off the freaking market!! Hello! Anyone home?
It’s like so obvious isn’t it? The time had come that the cost of extraction of oil goes up so high up that the return of investment of extractions of oil had became unprofitable.
They had to cut supply to avoid loss and the obvious outcome is more oil supply cut and or disruption in many parts of the world.
Alternatives such as heavy oil (tarsands) or deep sea drilling projects may be place under “consideration” pressure to halt their operations due to higher cost…and lower margins.
The above is simply demand and supply at work…and yes…the lower the oil prices the less supply it will be.
Get ready for the great oil shortages similar to the 1973 oil shock and it will be global until ….probably when the prices goes back up again…in a series of shocking waves.
Sit back and enjoy the ride until someone clever enough to go renewable…in energy regardless of the cost and fuck the return of investments!! Go Renewable Energy!
Popularity: 1% [?]
