Oil Back to Normal?

Even that does not change that the big oil companies laid off a lot workers, and won't stop those already scheduled for layoff. Which does not surprise most, because of course they know their industry is based on a finite resource that is highly affected by world disruption. And when you look at the latter, I don't see the middle east settling their differences anytime soon.

Putin hasn't backed down, this is just more gamesmanship....the last cease fire amounted to nothing...In any case this would have nothing to do with the price of oil, which I think is due for another downturn, and will make new lows...Inventory and storage are reaching maximum capacity, and demand holds steady...This recent movement in oil is probably just due to various financial instruments...

http://www.cnbc.com/id/102415089#.

http://www.huffingtonpost.com/2015/02/12/ukraine-peace-talks_n_6667470.html

http://www.eia.gov/petroleum/supply/weekly/

http://www.eia.gov/dnav/pet/pet_stoc_wstk_dcu_nus_w.htm

http://www.eia.gov/petroleum/weekly/

I think that oil prices will fluctuate dramatically throughout this year, but their trends tend to go up due to some factors:

1- Ongoing uprisings in the Middle East area like in Yemen, Egypt and Libya. Similarly, in Ukraine.. However, I think setting some fabricated solutions to the problems related to these countries, will -in turn- lead to a worse situation in the long run.

2- The possible extension of the ISIL, especially in Iraq (one of the biggest oil producers).

3- The political prospect in Saudi Arabia, the most largest producer of oil, isn't clear yet. Alarmingly, the world reports say that the new king has some mental problems, according to his age.

For one thing US is the largest oil producer.....as well as the largest Gas producer...

http://www.bloomberg.com/news/articles/2014-07-04/u-s-seen-as-biggest-oil-producer-after-overtaking-saudi

Peak oil has become peak consumption, as it has leveled off....

Improvement due to cafe standards and hybrid and electric car sales have collectively stunted oil consumption....together with other innovative technologies...

Average miles driven per year has been dropping for many years....probably due to internet connectivity...

http://www.fhwa.dot.gov/policyinformation/travel_monitoring/13jantvt/index.cfm

People expect inflation to be a bad thing. Dedflation can be far worse. Having been involved in OCTG back in the 80's, I tell you that the market is volatile and far reaching.

10 years back, who would have guessed the current situation. Option B and I'd have given up the ghost.

Your best chum, Kris X

Well I hope they don't get back up there too quickly.

I'm rather enjoying this lay off especially now that I got signed up for unemployment!

(You wouldn't believe how well that pays when your last job was oil field related! )

Its more than just the oil fields. The steel company i work for is in dire straits due to less pipelines,less offshore drilling rigs, less pressure vessels,less oil storage tanks.

Still the same old thing - I came into the oil field in the big rush of the 1970's and went out in the slow down in the 1980's. Nothing ever changes - history repeats itself.

Our dirt roads (lease roads) through the woods around here will now deteriorate into two muddy ruts in a few years, as the money isn't there to maintain them, once again. Sure was nice for a few years to have dirt roads better than the state paved roads. This happens every decade or so. Wonder what the Allegheny Defense League, who stopped me on my bike and interviewed me about the condition of the lease roads in the middle of the shale drilling frenzy will think of the roads in a few more years? At that time, they were immaculate and to their obvious chagrin, I told them so. They were hoping to shut down the drilling.

Told you so!

Correlation doesn't necessarily imply causation.

It had drop 3% the day before. So this is all speculation. Which in itself is what drives most of the price when it make quick changes like that.

tack on another 3% today

Clearly this is a bounce, for this to be a "V" shaped recovery, things would have had to change.....and they haven't...Now the market might have been temporarily oversold but the fundamentals that caused the downturn remain in place....so I think oil prices will remain low for some time....