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"‘_‘; ,-. :'"- ~  “.  - __ , _ r A
' K ' N    M‘=7!'"]"“V4.*'[: *r| ”uP}; .
The U. $. benchmark for crude oil
price,  which is down more than 25%
in the lost sixth months,  fell below
$45 this week....
It comes down to simple
economic theory.  The global
supply increase has
engendered a drop in price. 
This plunge will con...
OPEC is hoping thcft it con mc*intc”in
its shcre of the '. ‘.'or! .c5’s oil,  mor! :»et
cs . ‘§*. r.1ei'iccn output hc‘s i...
Gulf members of OPEC have reiterated
Mazrouei’s statement saying OPEC will not be
the ones cutting production,  thus bolst...
3 3“ 1 - ac ' t
cu cox, “ . ..l . . ¢
.5" "7 I‘:  'I
II 4. . .
I
0 r . 
C ,  ‘: :
I .4 a’
‘s -‘ . « r I
4; L .1 ‘- I. " ; ...
As OPEC is no longer closely
controlling the world’s oil supply,  the
collapse will be greater,  and the road
to recovery ...
By Carl Koenemann
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Oil Expected to Continue Plunge

Carl Koenemann discusses the oil downturn, and what this means for the future

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Oil Expected to Continue Plunge

  1. 1. "‘_‘; ,-. :'"- ~ “. - __ , _ r A ' K ' N M‘=7!'"]"“V4.*'[: *r| ”uP}; .
  2. 2. The U. $. benchmark for crude oil price, which is down more than 25% in the lost sixth months, fell below $45 this week. Analysts from Wall Street are expecting the price point to drop to $1-IO or below.
  3. 3. It comes down to simple economic theory. The global supply increase has engendered a drop in price. This plunge will continue until it reaches equilibrium. As the prices will continue to drop in the coming months, American Shale drillers may have difficulty maintaining production levels.
  4. 4. OPEC is hoping thcft it con mc*intc”in its shcre of the '. ‘.'or! .c5’s oil, mor! :»et cs . ‘§*. r.1ei'iccn output hc‘s increc‘-sec‘ recently. SL-hcil Al. E°*ic*‘. *~. i'oL--ei, the Energy l**iinister of the UAE, stcftecl' recently tlhcft he st-ecl'lc'tc*s't! .y h~e! .i~e! es thct the US shcle producers ‘. ‘_'iU, yiel. c5 to the pressure of the l. o1'Aer prices, cnc’ i'il. l. cut the i1L-: m:’l>-es‘ of operc'ting rigs.
  5. 5. Gulf members of OPEC have reiterated Mazrouei’s statement saying OPEC will not be the ones cutting production, thus bolstering the price, any time soon. Back in November, OPEC announced that will continue to target 30 million barrels per day.
  6. 6. 3 3“ 1 - ac ' t cu cox, “ . ..l . . ¢ .5" "7 I‘: 'I II 4. . . I 0 r . C , ‘: : I .4 a’ ‘s -‘ . « r I 4; L .1 ‘- I. " ; .. , . . ‘C ‘. ‘| ": qua U» J an ta I fl . ? an Hui any I? Q n V, J9 n_ . . . . . . . en . ._, ,. . , , .. .. ~I ‘ 1') Q? ‘'1 I. ’ .113 ~ I 9 4 ‘* 4 r ‘ I t I 4 J I ,1 _ ¢ I- L‘ .2. I [Iva I ‘I r “ Q. r 4 ; , , wt -r “O / rm » , ,. 4* u u A . .- u I; ‘ , ‘'3? ‘'. 'l‘? J 1% 4! 1 1 63 ‘ ‘c ‘M: I - to u 1 u . ' f? L iéll 7-» . . . 3 2 . 4 _ , It a’ ti U . . >‘a 10;, Ft. ‘ u A t € ’ I . .—, ,,, .. 4"‘ e E : . . «». ..w.
  7. 7. As OPEC is no longer closely controlling the world’s oil supply, the collapse will be greater, and the road to recovery will take much longer than prior downturns according to Jeffrey Currie, head of commodities research at Goldman Sachs. Additionally, a drop in demand has only exacerbated the situation for oil producers. Experts are confident that rig counts will start decreasing, but it will just take a few months to begin to see the impact.
  8. 8. By Carl Koenemann

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