Oil Industry : Oil Prices Essay

968 Words Apr 28th, 2016 4 Pages
Oil Prices Perk Up, Suggesting a Rebound Has Taken Hold by Jad Mouawad. The $20 a barrel of oil that happed in February. The commodity market have turn and people started to ask the question if oil prices have finally bottomed out. The rebound in the oil market comes as the investors of oil focus on declines in oil drilling and freezing the out puts by top producers. By doing that New York barrel raise $37.90 and in London barrel raise above $40 after a long period of time. But the low oil prices are finally started to take a hold. Jason Schenker founder of Prestige Economics said that “in commodity circles, low prices cure low prices, just like high prices cure high prices.” A rebound came from Baker Hughes said that the domestic oil rig count had drop to the lowest and that the oil producers are going to cut back on output as the low prices make a high cost rigs. And the oil and gas drilling rigs also fell by 130, to 1,761. Even through the oil market was low the global oil market continued to oversupplied the oil. In the United States stockpile are the highest level after 80 years and they are still growing. One of the world’s largest producers are increasing its production that is associated with nuclear program. Other producers are expect to freeze production that was agreed by Saudi Arabia, Russia,
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Qatar, and Venezuela. The rebound happened because the investors worried about a potential supply disruption that result in a tensions between oil producers that is…

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