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Date Posted: 10:28:27 07/24/15 Fri
Author: Knut Holt
Subject: Trends in oil prices

Comments on Oil Prices and Oil Market
by Knut Holt
http://www.mydeltapi.com

Gradually new energy sources will take over, and right now new oil and gas wells are opened in massive numbers. The oil and gas prices are bound to stay low for a long time.

The oil prizes are bound to drop to historically,at least regarding 20 years time span history, low levels, due to an overflow of oil on the market and because the world in fact will use less oil due to transfere to other energy resources and climate politcs. Good for the world, bad for the oil companies and certain countries that are totally dependen upon high oil prizes.

The war for high oil prizes by certain producents and certain countries is lost. By july 2015 the oil prices are trending to a point far below dollars 50, due to a market overflown by oil, and due to a lesser demand for oil that expected, The demand for oil will gradually decrease because of climate politcs and because new energy resouces takes over for oil. The oil prizes are bound to stay low for many years to come.

Gradually new energy sources will take over, and right now new oil and gas wells are opened in massive numbers. The oil and gas prices are bound to stay low for a long time.

The bulls predicting higher oil prices have shown to be wrong. The positive trend is broken and the oil prize is bound to drop to a new low level far beneath dollar 50. An overflow of oil in the market and other fundamental facts support this conclusion.

In 2015 and the nearest years to come, the market is overflown by oil from producents without ISIS problems, so ISIS only manages to slow down the fall rate in oil prizes that we have.

By late july 2015 gold prizes are tumbling, but oil prices even more so, so the ratio gold/oil seems to be increasing, which confirms the law that decrease in oil prices gives an increase in gold prices or at least a slower decrease in gold prices when both are in fall.

My country, Norway is in the same situation as Russia in suffering from decreased oil prices, and even more than Russia. However, Norway has great funds, and will probably manage the situation, but also here you can count on a coming recession. For the World as a whole the declining oil prices are good, and probably also for Russia in the long term.

Every station in the chain from oil well to the consumer wants to maximize profit and is especially reluctant to lower the prices when they sell the product to next station.


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