Wednesday, December 10, 2014

$50 Per Barrel Oil Is Coming: "OPEC No Longer Exists In Any Meaningful Sense

The Opec oil cartel no longer exists in any meaningful sense and crude prices will slump to $50 a barrel over the coming months as market forces shake out the weakest producers, Bank of America has warned. 
Revolutionary changes sweeping the world’s energy industry will drive down the price of liquefied natural gas (LNG), creating a “multi-year” glut and a much cheaper source of gas for Europe. Francisco Blanch, the bank’s commodity chief, said Opec is “effectively dissolved” after it failed to stabilize prices at its last meeting. 
“The consequences are profound and long-lasting,“ he said. 
The free market will now set the global cost of oil ...
The subject of the pricing of oil is complicated, and it's worth reading the whole thing.

 But note the article brings up the subject of LNG. This is the wild card that is going to bring the United States victory in the coming years.

Here's a post I did on what is, and will be happening with LNG.

I wonder if Citizen Warrior will ever do the right thing and amble his hippie ass over here to issue an apology to me.

I told him this would happen and how.


Anonymous said...

Iran: Fall in oil prices is 'treachery'TEHRAN, Iran (AP) — Iran's President Hassan Rouhani said Wednesday that the sharp fall in global oil prices is the result of "treachery," in an apparent reference to regional rival Saudi Arabia, which opposed production cuts.

Oil prices have plunged by more than 40 percent since June to around $65 a barrel, placing severe strain on Iran's economy, which is already hobbled by international sanctions imposed over its nuclear program. An OPEC meeting last month failed to reach agreement on production curbs, mainly because of Saudi opposition.

Rouhani told a Cabinet meeting Wednesday that the fall in prices is at least partly "politically motivated," the result of a "conspiracy against the interests of the region, the Muslim people and the Muslim world." His comments reflect concerns among Saudi Arabia's rivals that the kingdom is capable of withstanding the revenue losses and is forcing lower oil prices to damage their economies.

"Iran and people of the region will not forget such conspiracies, or in other words, treachery against the interests of the Muslim world," he said

Nicoenarg said...

"I wonder if Citizen Warrior will ever do the right thing and amble his hippie ass over here and apologize to me."


Always On Watch said...

A few smiles right now in this household. We heat this old house with oil.