Menu Close

For first time in years, the world is producing more oil than it needs – The Washington Post

Remember when, a few short months ago, the whole planet was panicked about cripplingly high oil prices? That’s changed in a hurry. Crude prices are now plummeting. Oil in London is trading for $96 per barrel, way down from $126 back in February.

The big reason why: supply and demand. The world is pumping out more oil and other liquid fuels right at the moment when the global economy is starting to slacken and people are using less of the stuff. Matthew Phillips of BloombergBusinessweek offers up this great chart:

For first time in years, the world is producing more oil than it needs - The Washington Post

So where did this extra oil* come from? Some of it was tapped from new unconventional supplies in the United States and Canada. But OPEC countries have also been cranking up crude production in the past year. Iraq is slowly rebuilding its oil industry. And Saudi Arabia has added about 1 million barrels per day in the past year, to the point where it’s now pumping out more oil than it has in the past three decades.

via For first time in years, the world is producing more oil than it needs – The Washington Post.

Join the conversation and have a little fun at Capitalstool.com. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

RSS
Follow by Email
LinkedIn
Share

Discover more from The Wall Street Examiner

Subscribe now to keep reading and get access to the full archive.

Continue reading