From Backdoc - I THOUGHT THIS ARTICLE IS IMPORTANT IN LIGHT OF MY POST AND RECENT EVENTS IN IRAQ! BLESSINGS !
Why oil is more likely to test $50 than $100 again next year
Commentary
John Kilduff, parter at Again Capital Sunday, 16 Nov 2014 | 10:53 AM ET
When oil and gasoline prices are soaring, oil analysts like myself try to assuage the fears of consumers with the old saw: There is no better cure for high prices than high prices.
The succinct analysis of commodity market dynamics likely makes motorists irate, as they pay $100 or more to fill up the family SUV. They fail to appreciate how efficient market forces can be, even at that particular moment of pain.
However, that is precisely why oil prices are falling now--and will likely continue to fall in the coming months to as low as $50 per barrel!
Why oil is more likely to test $50 than $100 again next year
Commentary
John Kilduff, parter at Again Capital Sunday, 16 Nov 2014 | 10:53 AM ET
When oil and gasoline prices are soaring, oil analysts like myself try to assuage the fears of consumers with the old saw: There is no better cure for high prices than high prices.
The succinct analysis of commodity market dynamics likely makes motorists irate, as they pay $100 or more to fill up the family SUV. They fail to appreciate how efficient market forces can be, even at that particular moment of pain.
However, that is precisely why oil prices are falling now--and will likely continue to fall in the coming months to as low as $50 per barrel!
On Thursday, in its weekly inventory report, the U.S. Department of Energy reported that oil production in the United States rose to its highest level in 29 years to just over 9 million barrels per day. To put that in perspective, the U.S. is now nipping at Saudi Arabia's heels, with that country currently producing about 9.6 million barrels per day.
The surge in U.S. oil production is due to the immense success of a reborn technology: hydraulic fracturing (better known as fracking), which has liberated millions of barrels of oil and millions of cubic feet of natural gas from fields that were thought to be bereft of fossil fuels.
Opponents of the practice have their work cut for them given the tremendous impact the drilling is having on oil and natural gas prices.
The second part of the low oil price story involves several key pipeline upgrades that actually changed the flow of oil, bringing it from the middle of the country to the Gulf Coast, where it is needed to supply the majority of the country's refineries.
For the complete/rest of the article, go to
http://ift.tt/1vfEHwH
The surge in U.S. oil production is due to the immense success of a reborn technology: hydraulic fracturing (better known as fracking), which has liberated millions of barrels of oil and millions of cubic feet of natural gas from fields that were thought to be bereft of fossil fuels.
Opponents of the practice have their work cut for them given the tremendous impact the drilling is having on oil and natural gas prices.
The second part of the low oil price story involves several key pipeline upgrades that actually changed the flow of oil, bringing it from the middle of the country to the Gulf Coast, where it is needed to supply the majority of the country's refineries.
For the complete/rest of the article, go to
http://ift.tt/1vfEHwH
via Dinar Recaps - Our Blog http://ift.tt/1pdNtsl
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