{"id":9792,"date":"2015-07-07T07:58:32","date_gmt":"2015-07-07T12:58:32","guid":{"rendered":"http:\/\/olduvai.ca\/?p=9792"},"modified":"2015-07-07T07:58:32","modified_gmt":"2015-07-07T12:58:32","slug":"oil-falls-off-the-chart-crushes-hopes","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=9792","title":{"rendered":"Oil Falls Off the Chart, Crushes Hopes"},"content":{"rendered":"

Oil Falls Off the Chart, Crushes Hopes<\/a><\/h3>\n

Greatest oil glut in history exacts its pound of flesh.<\/strong><\/p>\n

The ugly data for oil \u2013 ugly for those who\u2019ve been hoping for, and hyping, a quick rebound to Nirvana \u2013 keeps piling up. But for two months, the price of oil was immune to it, trading in a range of around $60 per barrel for the US benchmark West Texas Intermediate.<\/p>\n

It stirred up false hopes that lured yield-desperate investors into plowing more money into the industry, which allowed companies to raise many billions in new debt and equity capital so that the permanently cash-flow-negative business model of fracking could soldier on.<\/p>\n

But on June 24, reality did start to hit. From that day\u2019s high of $61.50 a barrel, it has been one nasty ride. Currently, WTI trades for $52.67 a barrel, after a 7.5% plunge since Thursday (Friday had only limited trading) to settle at the lowest level since April 13, down 14.4% since June 24. This is what the\u00a0swoon looks like\u00a0in 5-hour increments:<\/p>\n

\"US-WTI-06-10-2015=07-06-2015\"<\/a><\/p>\n

OPEC, which is furiously fighting for market share, has no intention of cutting back production. While its limit has been 30 million barrels per day (bpd), reality has been making a mockery of it. In June, production rose 170,000 bpd to 31.28 million bpd, the fourth months in a row of increases, and the highest level since August 2012, according to Platts\u2019\u00a0report<\/u><\/a>\u00a0released today.<\/p>\n

While some OPEC members experienced declining production and lost market share in June, Saudi Arabia increased production to 10.35 million bpd and Iraq added a phenomenal 330,000 bpd to produce over 3 million bpd.<\/p>\n

Output \u201cseems to be on the way up, and at a time when the market could be looking at a lot more oil from Iran,\u201d explained Margaret McQuaile at Platts.<\/p>\n

 <\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Oil Falls Off the Chart, Crushes Hopes Greatest oil glut in history exacts its pound of flesh. The ugly data for oil \u2013 ugly for those who\u2019ve been hoping for, and hyping, a quick rebound to Nirvana \u2013 keeps piling up. But for two months, the price of oil was immune to it, trading in […]<\/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":[7051,7052,3521,1775,7053,2959,595,7054,600,996,4254,4255],"class_list":["post-9792","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-crude-oil-storage","tag-crude-oil-supply-glut","tag-oil-bust","tag-oil-price-collapse","tag-oil-price-plunge","tag-oil-price-rebound","tag-oil-production","tag-oil-stocks","tag-opec","tag-us-crude","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9792","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=9792"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9792\/revisions"}],"predecessor-version":[{"id":9793,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9792\/revisions\/9793"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9792"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9792"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9792"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}