Oil prices are crashing again. Yesterday the price per barrel of benchmark Brent dipped below US49. Here is some news:
WTI and Brent tumbled on Thurs
lowest levels since OPEC cuts in Nov 2016
Brent dipped below $49 per barrel on Thurs
rapid rebound in U.S. shale production
U.S. crude inventories record high 535 million barrels end March
rapid rebound in U.S. shale production
U.S. crude inventories record high 535 million barrels end March
WTI sank to $46 and Brent fell into $40s for first time in 2017
gasoline stocks increased slightly
gasoline stocks increased slightly
dramatic growth in U.S. oil production
April added 28,000 bpd, taking U.S. output up to 9.293 million b/d
up by 200,000 bpd since March, up by 450,000 bpd since year began
industry could break all-time production records
U.S. production “growing hand over fist, market remain oversupplied"
more difficult to say oil prices will gain this year
U.S. production “growing hand over fist, market remain oversupplied"
more difficult to say oil prices will gain this year
projected Brent at US$57 overly optimistic
Adding to glut is Libya restored production
Adding to glut is Libya restored production
output above 700,000 bpd, another 500,000 bpd this year
OPEC cuts given enormous credit in rally up to $50 last Nov
now being discounted, focus on shale comeback.
mistake to ignore rising U.S. production
OPEC has already been priced into the markets
OPEC has already been priced into the markets
leaves massive risk to downside if OPEC fails to cut further
My comments : Of course this is very good news for the world economy. Airlines will cut air fares and tourism will pick up all over the world.
Cost of transport will decrease and prices of goods and services will ultimately either become cheaper or NOT INCREASE for longer periods (more likely scenario).
Inflation will decrease.
Petronas will be in deeper sh_t. So will our gomen finances. The kleptocrats will become more creatively stupid at stealing from a shrinking treasury.
The Ringgit may weaken or not strengthen as much as it could, would or should.
Lets see.
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