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Home Energy OilPrices 5ReasonsOilPricesAreDropping

5ReasonsOilPricesAreDropping
ByChrisPedersen|Mon,13October201422:09|

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BenefitFromtheLatestEnergyTrendsandInvestmentOpportunitiesbeforethemainstreammedia

PRICE

CHG

CHG%

CrudeOil

55.48

0.43

Ethanol

1.664s

0.054

0.77%
3.14%

NaturalGas

3.763

+0.044

+1.18%

Gasoline

1.5694

0.0070

0.44%

HeatingOil

1.9802

0.0215

1.07%

Gold

1198.2

9.5

0.79%

Clickon fordetailedpricecharts.
Quotesaredelayedatleast10minutes.

andinvestingpublicareawaretheyevenexist.TheFreeOilprice.comEnergyIntelligenceReport
givesyouthisandmuchmore.Clickheretofindoutmore.

Asoilpricescontinuetofall,analystsandproducersaretryingtowraptheirheadsaroundthereasons
andidentifyafloorprice.EventhoughcrudebenchmarkslikeBrentandWTIkeepdropping,thecostof
findingoilcontinuestorise.Whataresomeofthekeydriversthathavecreatedthisparadox?
1.TheU.S.OilBoom
Americasoilboomiswelldocumented.Shaleoilproductionhasgrownbyroughly4millionbarrelsper
day(mbpd)since2008.ImportsfromOPEChavebeencutinhalfandforthefirsttimein30years,the
U.S.hasstoppedimportingcrudefromNigeria.
Related:DroppingOilPricesSendShockwavesThrough

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2.LibyaisBack
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interestedin:
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Becauseofinternalstrife,analystshaveuntilrecently
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sortedouttheirdisruptionsmuchquickerthananticipated,
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producing810,000barrelsperdayinSeptember.Libyan
officialstoldtheWallStreetJournallastweekthatthey
expecttoproduceamillionbarrelsperdaybytheendofthe

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monthand1.2millionbarrelsadaybyearlynextyear.
3.OPECInfighting
Therehavebeennumerousreportsaboutthediscord

InvestmentOpportunitiesin
GeothermalPowerGeneration

betweenOPECmembers,leadingmanytobelievethatOPEC
willnotbeabletoreigninproductionlikeithasdonesointhe
past.TheSaudisandKuwaitishavereportedlybeeninanoil

MachinetoMachineTechnology
A$1TrillionOpportunity!

pricewar,repeatedlyloweringtheirpricesinorderto
maintaintheirmarketshareinAsia.JohnKingston,thenews

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16/12/2014

5ReasonsOilPricesAreDropping
OurTopWaterTechnologyPicks
for2013

directoratPlatts,believesthattheSaudiswillnotbewillingto
giveupmarketshareliketheyhavedoneduringprevious
pricedrops.

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Related:LEGOBowsToGreenpeaceCampaign,Breaks

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TiesWithShell
4.NegativeEuropeanEconomicOutlook
EuropeanCentralBankpresidentMarioDraghihasleft

Getaninsidelookattheenergymarkets
withourfreeweeklyreportandbenefitfrom
ouruniquenetworkofindustryinsiderswho
willletyouinonthelatesttrendsand
investmentopportunitiesintheenergyspace.

investorsconcernedaboutthecontinentsslowgrowth.
Germanysexportsweredown5.8percentinAugust,stokingthefearsofanxiousinvestorsthattheEUs
largesteconomyhaddoubledippedintorecessionlastquarter.AcrosstheEurozone,theIMFagain
lowereditsgrowthforecastto0.8percentin2014and1.3percentin2015.
5.TepidAsianDemand
Beyondsloweconomicgrowthandcurrencydepreciation,anumberofAsiancountrieshavebegun
cuttingenergysubsidies,resultinginhigherfuelcostsdespiteadropinglobaloilprices.In2012,Asias
topspendersonenergysubsidies,asapercentageofGDPincluded:Indonesia3percentThailand2.6
percentVietnam2.5percent,Malaysia2.3percent,andIndia2.3percent.Indiaisaprimaryexample.
Between20082012,Indiasdieseldemandgrewbetween6percentand11percentannually.InJanuary
2013,thecountrystartedcuttingthesubsidiesofdiesel.Sincethen,dieselconsumptionhasplateaued.
ByChrisPedersenforOilprice.com
MoreTopReadsFromOilprice.com:
DoesThis$1.5BillionShalePurchaseSignalAChange?
TheOilWeapon:ANewWayToWageWar
TheRoleOfOilPricesInGlobalFinancialMarkets

Abouttheauthor

ChrisPedersen

MorerecentarticlesbyChrisPedersen
Wed03December2014

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5ReasonsOilPricesAreDropping

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Leaveacomment
ArtemonOctober142014said:
SothereisnoconnectionwithRussiaatall?AndIranisnotworthmentioning?

DavidHrivnakonOctober152014said:
Youforgot#6,electricvehicles.Withmorethan260,000ontheroadintheUSAthatstartstotranslatetolessgas
needed.IcalculateIamnowsaving$225/monthinfuelcosts.

faradayonNovember072014said:
itsobviouslybecauseoffrackingforthemostpart,akashalegas.

KoyonNovember202014said:
ThemainreasonwhyoilpricesaredroppingistocutthedemandfornaturalgaswhichisRussia'smainexportas
wellasoilfromSyriaandIran.Thisiswhathappenedduringthe80'swhentheUSandSaudiArabiamanipulated
theoilpricetoweakenIraq,aSovietallywhichthenleadtothefalloftheSovietUnion.Whyisthishappeningright
now?BecausetheUSdollarislosingitsvalue.Debtisalmost$18trillion,theAmericaneconomyisheadedfora
collapse,countrieslikeRussiaandChinaarestartingtodumptheUSdollar.Thisiswhythereissomuch

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5ReasonsOilPricesAreDropping

demonizinggoingonagainstRussia,China,Iran,Syria(ISISbeinganotherexcusetothrowdowntheAssad
government).Sobasically,thisisjustColdWar2.0

psi2u2onNovember202014said:
6)LENR
(electricvehicleswouldbe7thonmylist,wellbelowLENR,whichisthegeniethat'sbeenletoutofthebottle).

MazhaMahmoodonNovember302014said:
Therearetwootherreasonsoffallinoilpricesthoseshouldbegivenweight:
1)Efficienthybridvehiclesandothertechnicaladvancementinautomobilesthatincreasedtheefficiencyfrom20
miles/gallonto26miles/gallon.Hencereduced30%consumption.
2)Mostofvehiclesandindustryhasbeenshiftedongaswhichisnearsubstituteofpetroleumproducts.

MahendraonDecember062014said:
Themainreasonforpricereductionofoilbecause,americaincreasedtheproductionofshalegasandreducedthe
consumptionofcrudeoil.pleasegoogleitabout'SHALEGAS'.

michalsonDecember082014said:
FormefirstreasonisRussia?
RussiagiveasylumtoSnowden.
USAsupporttherevolutionagainst(Russianfriendly)UkrainprimeministerYanukovits
USAsupportsandgiveweaponstorevolutionagainstSyriaprimeministerBasharAlAshand.Sincethisisalso
RussianfriendlyprimeministerandbougthweaponsonlyfromRussia.
USAgovernmentisresponsibleforthetwowarsthatcostthousandoflivesandnowtrytohitoilpricestostrike
RussianEconomy.

SohailsarwarkhanonDecember092014said:
Believeitornotthereasonisdajjalfactor.Theworldwillwitnessmasschangesinthedecadetocome.Changes
likeallsortofmachinerywillstopworkingandmanymorechanges.weareheadingtowardsthisdaybyday.

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