Oil prices have shown signs of life over the past few weeks, as production declines in the U.S. raise expectations that the market is starting to adjust.
OPEC increased production in 2015 to multiyear highs, principally in Saudi Arabia and Iraq where production between the two added 1.5 million barrels per day (mb/d) to inventories after the no cut stance was adopted.
Plummeting oil prices have raised fears of a worldwide recession, even though countries are still reporting growth in jobs and income.
Crude oil just capped off a third straight week of declines, as WTI nears the $40 per barrel threshold.
Not only is BHP facing vastly reduced commodity prices, since the disaster investors have heavily sold down BHP shares to the level of ten years ago.
Bullish analysts believe the expanding middle class in China will still deliver rising demand, with an accompanying rise in the price.
As traders, investors and pundits, we all like to think that what we do is akin to a science.
Why are commodity prices, including oil prices, lagging?
Why would high oil consumption as a percentage of total energy be a problem for countries?
On Wednesday, federal environment minister Greg Hunt approved the Watermark Coal Mine in New South Wales.
Some people talk about peak energy (or oil) supply.
Australia may be home to some of the world?s... More
There is a rapidly growing wealth divide... More
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If bond investors are correct, the flattening of the US yield curve implies the world is heading towards a deflationary trap of lower prices and stagnant economic growth over many years.
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