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When Will the Price of Oil Rise?
The price of oil will go up as oil wells play out and investment in exploration, drilling and new wells falls off. The price of oil will also go up if Saudi Arabia or the USA cut back on production. And, the price of oil will rise when demand goes up again. However, if and when Iran completes a deal to curtail its nuclear ambitions the country with the fourth largest oil reserves in the world will help flood the market with cheap crude. The Wall Street Journal writes about signs of reduced oil production.
The U.S. and the Organization of the Petroleum Exporting Countries have flooded the world with crude oil, sending prices tumbling. But the abundance has overshadowed declining production in areas-from Colombia to Norway to northern China-that experts consider vital to long-term supply growth.
Confronted with the plunge in prices, companies in these regions are delaying and canceling projects. Across the world, just six major oil projects received the green light in 2014, compared with an average of more than 20 a year from 2002 to 2013, according to Deutsche Bank.
The International Energy Agency said Friday that non-OPEC supply growth would “grind to a halt” in 2016, with output due to fall in Russia, Mexico, Europe and elsewhere.
It can take years from discovery of new oil reserves to production. As oil prices have fallen there is less money to find and develop reserves and less incentive. When will the price of oil rise? It might be as early as next year, unless Iran agrees to a limited nuclear development program.
China, Greece and Iran
China is a major importer of raw materials including crude oil. The slowing Chinese economy reduces the demand for oil and the price of oil. CNN Money reports that China is expect to have its worst growth since the crisis of 2008.
Looking ahead, economists expect to see 6.95% annual GDP growth for this year, and even slower expansion at 6.5% in 2016.
There’s no question about it: After years of breakneck growth, China’s economy, the world’s second-largest, is now slumping. Economists say the government has no choice but to continue working to stimulate the economy, especially as data points continue to disappoint and risks keep piling up.
When will oil prices rise? One of the key factors is when China’s economy picks up speed again. Likewise the Greek debt crisis is a plague on the house of Europe and needs to get fixed to help bring European growth back on line. The Iranians have been suffering under economic sanctions imposed by Western powers who want Iran to get off the path to developing nuclear weapons. Talks are at a critical phase right now. Oil prices are currently down as traders expect a deal that will allow Iran to export again. CNN reports that oil prices tumble as Iran deal appears possible.
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When Will the Price of Oil Rise?
1.
2. The price of oil will go up as oil
wells play out and investment in
exploration, drilling and new wells
falls off.
3. The price of oil will also go up if
Saudi Arabia or the USA cut back
on production.
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5. And, the price of oil will rise when
demand goes up again.
6. However, if and when Iran
completes a deal to curtail its
nuclear ambitions the country
with the fourth largest oil reserves
in the world will help flood the
market with cheap crude.
7. The Wall Street Journal writes
about signs of reduced oil
production.
8. The U.S. and the Organization of
the Petroleum Exporting Countries
have flooded the world with
crude oil, sending prices tumbling.
9. But the abundance has
overshadowed declining
production in areas-from
Colombia to Norway to northern
China-that experts consider vital
to long-term supply growth.
10. Confronted with the plunge in
prices, companies in these regions
are delaying and canceling
projects.
11. Across the world, just six major oil
projects received the green light
in 2014, compared with an
average of more than 20 a year
from 2002 to 2013, according to
Deutsche Bank.
12. The International Energy Agency
said Friday that non-OPEC supply
growth would “grind to a halt” in
2016, with output due to fall in
Russia, Mexico, Europe and
elsewhere.
13. It can take years from discovery of
new oil reserves to production.
14. As oil prices have fallen there is
less money to find and develop
reserves and less incentive.
15. When will the price of oil rise? It
might be as early as next year,
unless Iran agrees to a limited
nuclear development program.
21. There’s no question about it: After
years of breakneck growth,
China’s economy, the world’s
second-largest, is now slumping.
22. Economists say the government
has no choice but to continue
working to stimulate the
economy, especially as data
points continue to disappoint and
risks keep piling up.
23. When will oil prices rise? One of
the key factors is when China’s
economy picks up speed again.
24. Likewise the Greek debt crisis is a
plague on the house of Europe
and needs to get fixed to help
bring European growth back on
line.
25. The Iranians have been suffering
under economic sanctions
imposed by Western powers who
want Iran to get off the path to
developing nuclear weapons.
27. Oil prices are currently down as
traders expect a deal that will
allow Iran to export again.
28. CNN reports that oil prices
tumble as Iran deal appears
possible.
29. Crude prices dropped by 1.6% to
around $52 a barrel as investors
reacted to the potential new
supply.
30. Iran has plenty of oil it can export
the minute a deal is signed —
there are an estimated 30 million
barrels of crude in storage,
according to FACTS Global
Energy, an industry consultancy.
31. An agreement could also pave
the way for new foreign
investment by international oil and
gas giants like Royal Dutch Shell
and France’s Total.
32. When will oil prices rise? It may be
quite some time before oil prices
go up substantially and the near
term we may see much lower oil
prices.
