Dont get to used to these low #gas prices... The current drop in the price of oil is a result of #OPEC flooding the market with a 1M gallon surplus and trying to impose market share discipline on its members and other high-cost producers (i.e. fracking, tar sands, etc.) According to BoA, It will take six months or so to whittle away the 1 million barrels a day of excess oil on the market — with Brent falling below $60 and US crude reaching $50 — given that supply and demand are both “inelastic” in the short-run. That will create the start of the next shortage.... At the end of the day, they expect a pretty sharp rebound to the high 80s or even 90s in the second half of 2015. We expect a pretty sharp rebound to the high $80s or even $90 in the second half of next year.
Posted on: Mon, 15 Dec 2014 20:00:28 +0000
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