A New Lowest Price Set for Oil?

October 19, 2009 By

As oil rises for the third week in a row, and gasoline prices jump against historical trends, have we established a new floor for oil prices?

Industry and economic analysts predict that $70 a barrel is the new “bargain price” on oil. Lower than that, and oil producers can’t fund exploration and development. Oil companies slash dividends. Taxes from governments and exploration constrictions raise new project costs. Oil wells are capped. Economically, the $20 a barrel price of oil, which reigned in the 1990s, is a thing of the past.

Adding to the new floor is the need to replace declining production in established oil fields. 3.5 million barrels a day of new production is needed annually to offset the loss in production from old fields.

For more on this story in The New York Times, click here.

Filed Under: oil companies, oil price, oil supply, oil supply/demand, Peak-Oil

Oil Production to Remain Steady; Global Demand May Raise

September 10, 2009 By

Joint statements will impact American energy and the oil markets, as today OPEC agreed to maintain current levels of oil supply while the International Energy Agency (IEA) raised its global demand forecast.

IEA based its increased predictions on strong growth in the Chinese demand, with above average demand from the US market. This demand has helped keep oil at or above $70 a barrel, and drove a 62 percent increase in the price of oil this year.

Based on demand data, OPEC, which supplies roughly 40 percent of the world’s oil, has pledged not to cut supply over the next few months.

For more, click here.
Filed Under: Economy, oil companies, oil price, oil supply, oil supply/demand

Oil Prices Drop due to OPEC, Economy

September 4, 2009 By

On the news that OPEC will maintain their current supply levels, oil neared an eight-week low in price. Additional details on US unemployment kept prices lower. The price of oil, per barrel, is predicted to close at, or lower than, $68.

OPEC, which supplies 40 percent of the world’s oil, is scheduled to meet September 9 in Vienna. OPEC has orchestrated over 70 percent of the supply cuts this year, but is not predicted to cut supply at its upcoming meeting.

An additional factor dropping the price of oil is the end of the summer driving season in the US.

For more details, click here.
Filed Under: Economy, oil companies, oil price, oil supply, oil supply/demand

Oil Prices Remain Steady Despite Storm

August 18, 2009 By

The storms racing into United States territory have not raised oil prices, despite affecting Gulf of Mexico oil operations. Gulf productions account for a quarter of all domestic oil production.

Supplies of oil remain high, while demand is low, which has kept prices down. US inventory is 20 percent above levels last year.

For more data, click here.

Filed Under: oil companies, oil price, oil supply, oil supply/demand

Oil Values Fall as Stockpiles Surge

July 29, 2009 By

The price of oil registered its largest drop in three months, based upon unexpected stockpile numbers from the US.

Supplies were up by 5.15 million barrels in the US, with a declining demand. Estimators predict that oil may touch $60 or lower in the next week. Supply has continued to outstrip demand, particularly in the US.

To read more, click here.

Filed Under: Economy, oil companies, oil prices, oil supply/demand
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