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Commodities Briefing - Categorized | Oil, Price Watch more

Bullish on oil prices? Two reasons you might change your mind

Posted on 03 April 2013

For the oil market specifically, two massive structural changes have occurred since 2008. First, U.S. oil supply from horizontal drilling in tight shale formations has created a reversal of the four decade-long decline we’ve seen in U.S. oil production. When I say reversal, I’m not just talking a minor blip; I’m talking about erasing a 40-year decline within five years. This truly is a massive structural change to U.S. oil markets.
On top of that, in conjunction with the Great Recession, the world has figured out that there’s too much debt, and most of the developed world is going through a deleveraging period. Historically, whenever you deleverage, you get subpar economic growth, and subpar oil demand growth………………………………………..Full Article: Source


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This post was written by:

VRS - who has written 37214 posts on Opalesque Commodities Briefing.


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