Oil price: are the numbers stacked against oil producers?
In this article on the BBC online news source, it discusses the current state of oil prices globally and the projection in the near future. It helps to highlight the notion that although oil price per barrel has fallen dramatically in recent times, this summer we make see a spike in the price that could alleviate some of the suppliers anxieties. Despite such over supply of oil by producers and losing profits, they continue to pump out lots of oil. This is because many consider the process of shutting down production and restarting when prices increase to be more expensive than to keep producing even if a surplus and losing profits is taking place. For the full article click below.Click Here
It seems price will be low for awhile as the prices of gasoline in the U.S have dropped below $1.75. This is great for consumers though eventually with such low prices demand will grow and slowly dwindle down the supply oil companies have accumulated, so their decision makes sense.
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