{"id":11417,"date":"2015-08-24T06:33:29","date_gmt":"2015-08-24T11:33:29","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11417"},"modified":"2015-08-24T06:33:29","modified_gmt":"2015-08-24T11:33:29","slug":"market-meltdown-means-more-pain-for-oil-producers","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11417","title":{"rendered":"Market Meltdown Means More Pain for Oil Producers"},"content":{"rendered":"<p><span class=\"Apple-style-span\"><img decoding=\"async\" class=\"img-thumbnail alignright\" title=\"OilDerricks, cc Flickr Richard Masoner \/ Cyclelicious\" src=\"http:\/\/cdn5.geopoliticalmonitor.com\/wp-content\/uploads\/2015\/08\/OilDerricks.jpg\" alt=\"OilDerricks, cc Flickr Richard Masoner \/ Cyclelicious\" \/><\/span><\/p>\n<h3 class=\"article-title\"><a href=\"http:\/\/www.geopoliticalmonitor.com\/market-meltdown-means-more-pain-for-oil-producers\/\" target=\"_blank\">Market Meltdown Means More Pain for Oil Producers<\/a><\/h3>\n<p>Supply-side downward price pressure has been the story of global energy prices over the past year: newfound supply from the Shale Revolution, OPEC\u2019s gambit of market-share grabbing inundation, and new supply coming online from Iraq and soon Iran. The result was a plunge in oil prices from $115 in mid-June 2014 to below $70 by mid-December, and then to the low $40s as of last week.<\/p>\n<p>Now we are seeing signs of a new economic crisis, one that began in Asia and spread to Europe and North America. China\u2019s stock market meltdown has gathered pace and the recent yuan devaluation stands as a grim omen of not only tepid Chinese growth, but a lack of currency stability in the region should the crisis deepen. The 8% drop in Chinese exports in July is leading to a few uncomfortable questions of oversupply and a lack of global demand \u2013 systemic issues that transcend the sphere of domestic economic policy in China \u2013 and a looming currency war will only serve to make things worse.<\/p>\n<p>The precise bottom of this newest sell-off in global equity markets is open to speculation, but in terms of oil prices it represents demand-side downward pressure and, depending on how things pan out, the potential for a whole lot more of it. WTI crude was down over 3% in pre-market trading to flirt with the sub-$39 range.<\/p>\n<p>This is a scenario that is various degrees of terrifying for oil-producing economies, many of which have weathered the past eight months with a combination of fiscal austerity, asset sales, debt issuance, and burning through foreign reserves \u2013 basically holding on for dear life and hoping for a price rebound which now looks to have been pushed further into the future.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Market Meltdown Means More Pain for Oil Producers Supply-side downward price pressure has been the story of global energy prices over the past year: newfound supply from the Shale Revolution, OPEC\u2019s gambit of market-share grabbing inundation, and new supply coming online from Iraq and soon Iran. The result was a plunge in oil prices from [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[5674,500,8409,1278,1775,595,600,895],"class_list":["post-11417","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-geopolitical-monitor","tag-market-collapse","tag-market-meltdown","tag-oil-industry","tag-oil-price-collapse","tag-oil-production","tag-opec","tag-wti"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11417","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11417"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11417\/revisions"}],"predecessor-version":[{"id":11418,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11417\/revisions\/11418"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11417"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11417"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11417"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}