No end in sight for ‘roller coaster’ oil price ride

http://www.abqjournal.com/574821/biz/biz-most-recent/no-end-in-sigh... For the complete article use this link

Crude prices climbed in mid-April to their highest level this year, and gasoline prices followed suit, but industry analysts say oil markets remain saturated and downward pressure on prices will continue well into 2016.

“It’s a roller coaster,” said Daniel Fine, associate director at the New Mexico Institute for Mining and Technology’s Center for Energy Policy. “We’re just not seeing enough of a decline in oil output to stabilize prices, at least for the rest of 2015.”

And it’s unclear when in 2016 — or by how much — prices might rebound.

“The question now is whether price volatility will resemble a ‘V’ with a sharp decline followed by a sharp rebound, an ‘L’ that reflects a price plummet and then a flatline, or a ‘W’ with prices continually going up and down,” Royola Dougher, senior economic adviser for the American Petroleum Association, told the Journal.

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Permalink Reply by Joseph-Ohio on April 30, 2015 at 3:44pm

We can theorize / speculate until the cows come home on the 'when' and the 'why' about it all.

I'm in the camp that thinks the oil and natural gas prices are where they are (the 'why') because that's exactly where the big oil power brokers want them to be (TODAY).

Looks like to me the price of oil is driven by production and not by demand.

The low prices give big oil time to consolidate and an excuse to lowball.

As to the 'when' will prices go up - I theorize / speculate when they (the big oil power brokers) aren't making enough to satisfy themselves.  Can't theorize / speculate beyond (as to a time frame) myself.

Just my two cents ($0.02) worth.

J-O

 

Permalink Reply by bo boboski on April 30, 2015 at 7:30pm

I believe I'll fall in line behind T Bone Pickens, who says within 1 year, the price will be back up to $100. per barrel.

Permalink Reply by Joseph-Ohio on April 30, 2015 at 7:33pm
I think that would be good; but, I also think sooner would be better.

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