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Oil prices continued their collapse on Friday

Screen Shot 2014-12-13 at 09.19.40Oil prices continued their collapse on Friday… The new rout began Friday morning… Gas prices will continue to be in a free fall as long as crude oil is searching for a bottom,” the AAA motor club reported on Friday.

From an article published by The New York Times on page B1 of the New York edition dated 13 December 2014

Oil Prices Fall Again, and Stocks Follow Suit

Extracts

Oil prices continued their collapse on Friday as evidence mounted that the frenzy of American oil production would continue well into 2015 even while growth in global demand was declining.

The global benchmark for crude approached $60 a barrel — down more than 3 percent on the day and roughly 45 percent since the summer. And the American benchmark continued its free fall as well, to below $58 a barrel, down around 4 percent. A day earlier, it sagged below $60 a barrel in the United States for the first time since 2009.

The new rout began Friday morning after the International Energy Agency, the organization based in Paris that advises industrial countries, cut its forecast for global demand for crude oil in 2015 by 230,000 barrels a day. The agency cited less oil consumption in countries that produce it like Russia and a weaker-than-expected global economy.

“Gas prices will continue to be in a free fall as long as crude oil is searching for a bottom,” the AAA motor club reported on Friday.

Analysts say a major cut in global production would be needed next year to avoid an inventory buildup and to stabilize falling prices. But the prospect of a supply cut was dashed last month when the Organization of the Petroleum Exporting Countries declined to change its output ceilings at a meeting in Vienna.

SOURCE ARTICLE

From an article published in the weekend edition of the Financial Times 

Oil price fall sparks market turmoil

The price plunge forced operators such as BP and ConocoPhillips to reassess spending plans this week and put pressure on currencies exposed to crude exports.

From an article published by The Independent Friday 12 Dec 2014

New era of cheap oil…

The collapsing oil price that is reshaping the global economy could derail the green energy revolution by making renewable power sources prohibitively bad value, experts have warned.

Oil tumbled below $60 a barrel for the first time in more than five years yesterday – a fall of 44 per cent since June. It is forecast to fall further.

A new “era of cheap oil” would be good news for consumers and motorists – but analysts say the consequences for politics, industry and the climate could be even more radical.

A consensus is growing that oil prices will remain low for at least the next couple of years.

The low oil and gas prices are hurting Scotland now because the North Sea is a key part of its economy and they will hit it in the future because, at these prices, it won’t be commercially viable to extract many of the remaining reserves as what is left is difficult to access, making it expensive to extract.

FULL ARTICLE

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