December 19, 2015

TAXES, NOT SUBSIDIES:

Heavy oversupply pushes oil prices lower (Anjli Raval, 12/19/15, Financial Times)

News that tight restrictions on US crude oil exports, in place for 40 years, would be lifted as part of a budget deal agreed in Congress on Tuesday also weighed on prices.

Banks such as Goldman Sachs and Citigroup are among those that have said the oil overhang could push crude prices down to $20 levels.

"We still see high risks that prices may decline further, as storage continues to fill," said Damien Courvalin at Goldman Sachs.

Although growth in US production is weaker, it has not fallen enough, meaning the market will take longer to rebalance, said Mr Courvalin.

Higher Opec production, including additional barrels from Iran, is another risk factor for 2016, he added.


Posted by at December 19, 2015 9:03 PM

  

« NO WONDER THE TALIBAN IS SUING FOR PEACE: | Main | THE FACE OF THE GOP: »