7 YRS PROCESS - DAY 1334 - FALLING OIL PRICES ON OVERSUPPLY - PART 2

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Falling oil prices on oversupply

I am catching up with posting online my articles.


This is the continuation of the previous article:

FALLING OIL PRICES ON OVERSUPPLY - PART 1


And again the oil prices today have fallen again to a six-year low. The reason for the price fall is oversupply. According to the statistics OPEC organization is pumping about 900,000 barrels a day more than it anticipates will be needed next year.

WTF !!!

One of the reasons why they are doing it is that OPEC is trying to protect its market share ( in oil supply ) in response to the situation that soon UN will remove the sanctions on trade with Iran.

And I say it again: WTF !!!

I understand that this is all about the market play of demand and supply and the intentions of each oil producer to secure their profits. But unfortunately within this play of the demand and supply we miss few very important points:

First of all oil is a fossil fuel. It is an earth's resource which is limited and sooner or later it will end up. And secondly oil is earth's body blood.



To be continued





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Written: 2015 - December - 10   Published: 2016 - March - 31      © Copyright 2015 - Greg Wiater