Author: aspo-usa

(Reuters) As oil traders have learned time and again, picking a bottom in today’s glutted global market can be a fool’s game: just when prices start to rebound, as they have three times this year, a wave of renewed bearishness smacks them back down.

With oil resuming its southward march due to yet more oversupply, closing in on $35 a barrel after trading at $100 in June 2014, any number of factors could indicate when the rout may finally be over – for real this time.

(Reuters) The first response of commodity producers to a drop in prices is normally to increase production – ensuring price falls become deeper and more prolonged.t stimulates production, because farmers try to make up by a larger volume in production the decrease in income resulting from the fall in prices.”

(Business Insider) The oil market is still way oversupplied. As a result, prices haven’t been able to recover after falling about 70% in the last year. In the last few weeks as oil prices have collapsed to post-crisis lows a number of factors — both technical and fundamental — have been working against the market.

(OilPrice.com) The EIA recently published a global oil consumption data sheet that provided a clear picture of where the global oil economy is currently heading. The data revealed that although there had been a substantial oil consumption increase in the Middle East (led by Saudi Arabia), Asia (Led by China) and Oceania, the rest of the world which included Russia , other FSU countries, the U.S., Japan and Europe experienced a consistent decline in their oil consumption rates over the last decade.