(Seeking Alpha) There is much hope in the financial markets, with individual investors and oil company employees that oil prices will rise in the months ahead. Many point to the 2008 commodity crash as THE example as to why the oil price decline is likely temporary. However, if we look back further in history we see another situation where the crash in commodity prices marked an extremely long period of oil price suppression.
(CNN) World is ‘drowning’ in oil, says IEA Can oil really go lower? The answer from the International Energy Agency is an “emphatic yes.” The world is “drowning” in oil, and weak demand has failed to match relentless pumping by the world’s biggest oil producers, the group said. With Iran planning to boost its production by as much as 1.5 million barrels a day by the end of 2016, the global oil glut will get even worse.
(OilPrice.com) After flirting with breaking below $30 per barrel, oil decidedly broke that threshold at the end of last week, deepening the unrelenting losses the market shave witnessed so far in 2016.
The reasons for the 20 percent decline in oil prices since the start of the year range from rapidly growing concerns over the Chinese economy , fears of a persistent glut in oil supplies, and most recently the removal of sanctions on Iran .
(Guardian) Global oil prices will remain under pressure this week after Iran said it was ready to add half a million barrels a day to crude exports just hours after international sanctions were lifted this weekend.
Iran’s president, Hassan Rouhani, hailed a “glorious victory” as his country relished reconnecting to the global economy following the formal announcement late on Saturday that sanctions were ending thanks to moves by Tehran to scale back its nuclear programme.
(Guardian) There was a time when Blue Monday meant a song by New Order. These days it is the third Monday in January, allegedly the most depressing day of the year.
Whether there is any scientific basis for this claim is debatable, but for what it’s worth the argument is that people feel miserable because Christmas is over, the credit card bills are arriving, it’s dark when you go to work in the morning and it’s dark when you head home.
(Resilience.org) My favorite Texas oilman Jeffrey Brown is at it again. In a recent email he’s pointing out to everyone who will listen that the supposed oversupply of crude oil isn’t quite what it seems.
(The Guardian) Along the King Fahd highway in downtown Riyadh, signs of the country’s wealth glitter and dazzle. Monuments include the massive Kingdom Centre – instantly recognisable by the giant bottle-opener feature formed by its two wings – and the beautiful and futuristic Faisaliyah building. New ones are still rising, like the King Abdullah financial district, still under construction: a reminder of the fat years of high oil revenues under the previous monarch.
(Star Tribune) Oil industry experts have been making dire predictions of $20 per barrel oil. In North Dakota, they’re now reality, prompting warnings of more bankruptcies and less drilling in 2016.
Although the U.S. domestic crude oil benchmark is higher — $29.64 per barrel — Bakken producers must sell at a discount because of the region’s limited oil pipelines and the higher cost of alternate shipping methods.
(PeakProsperity.com) Geologist Art Berman explains why today’s low oil prices are not here to stay, something investors and consumers alike should be very aware of.
(UPI) Tensions between Iran and Saudi Arabia pale in comparison to market fundamentals, leaving crude oil prices less exposed to crises in the Middle East, analysis from Wood Mackenzie finds.
