irstupid on 04 January 2015
Pipedream24 said:
No. It has nothing to do Russia...It's just side effect that the Russian economy is imploding since they along with Venezuela are broke and depend on their oil exports to stay afloat. The cheap gas is being caused by OPEC. With the U.S. and Canada producing large amounts of shale oil, there has been an increase in the global oil supply that has been exaggerated by a decrease in demand. The shale companies need oil to stay above $65 a barrel in order to make a respectable return on investment. OPEC knows this and has refused to reduce their output in order to drive the price down and slow down the shale oil companies. There plan has already began to work. Oil is currently in the area of $58 barrel and investment in new shale oil production has slowed. It will take at least 6 months before the market will reflect this but oil prices will begin to rise in late 2015/early 2016. |
Yea pretty much. It's OPEC doing what we have laws against doing in America. Lower the price of their product so low that all the competitors go out of business, then being the only one left they have a Monopoly and can charge whatever the hell they want.
