Jonathan Christopher

Oil Prices Will Stay Where They Are - FirstEnergy

Question for FP Trading Desk:
It appears that production is not being replaced, and that there is a world-wide decrease in production capacity. If that is true, and consumption is constant or slightly increasing, then marginal supply will be decreasing , placing upward pressure on oil prices. Could you address these assumptions and conclusion?

What Really Caused Oil to Boom?

I think you are all right: Declining Oil supply, increasing Demand, Decline of use in some areas (USA) increasing in other areas (India and China). Small amounts of excess capacity lead to large marginal changes with small changes in demand. Speculators with easy money available (at first) and running out of money very fast as the market turned, dumping positions. It was a bubble, and now prices have dropped to far. When the tankers sitting with surplus oil become empty, prices will begin to jump again. have fun.