{"id":61274,"date":"2015-12-19T09:59:13","date_gmt":"2015-12-19T15:59:13","guid":{"rendered":"http:\/\/www.businesspundit.com\/?p=61274"},"modified":"2020-09-21T13:33:58","modified_gmt":"2020-09-21T17:33:58","slug":"oil-prices-will-continue-falling-in-early-2016","status":"publish","type":"post","link":"https:\/\/www.businesspundit.com\/oil-prices-will-continue-falling-in-early-2016\/","title":{"rendered":"Oil prices will continue falling in early 2016"},"content":{"rendered":"

\"Oil<\/p>\n

Oil prices will likely continue a downward plunge in early 2016, before eventually picking up steam and increasing as the year moves forward.<\/p>\n

Over the last 18 months oil has dipped by 68% due to a massive supply glut. Oil on Friday fell to a seven-year low of $34.50.<\/p>\n

The collapse in oil pricing has led to tens of thousands of job losses\u00a0w<\/a>hile corporate defaults reached new highs.<\/p>\n

While many analysts believe prices will rebound, at least in part, in 2016, some believe prices will fall further before that rebound occurs.<\/p>\n

“It’s still a long road ahead. The oversupply problem will be with us for a little while,” said Mike Wittner, global head of oil research at Societe Generale.<\/p>\n

Goldman Sachs is calling for a $38 per barrel price point in February.<\/p>\n

At the heart of the issue is a lack of a “rebalancing”\u00a0effort on a global scale. The world’s supply of oil remains far above its demand.<\/p>\n

An increase in supply was caused by a rapid increase in US oil production mixed with lower demand in China as the Yuan continued to devalue and the country’s stock market crashed.<\/p>\n

OPEC leader Suaid Arabia has promised to continue with its high production numbers to pressure American producers out of the market, while maintaining its dominance over market share.<\/p>\n

Goldman thinks oil could drop to $20 before things get better for producers.<\/p>\n

Oil production has gotten so bad that oil tankers are currently involved in a “traffic jam” as they wait to offload in the US Gulf Coast.<\/p>\n

While smaller US oil producers are taking on massive debt loads, companies like ConocoPhillips and Chevron continue to pump oil.<\/p>\n

Goldman Sachs says a $20 per barrel price point would finally lead to a correction that is long overdue in the market.<\/p>\n

Prices are likely to also tumble as Iran returns to the oil market following sanctions that will be lifted in January.<\/p>\n

In the meantime, American drivers are experiencing low gas prices near the $2 mark, with some areas falling further.<\/p>\n

Several analyts are suggesting that gas prices will drop to $1.79 per gallon on average by early February. Prices could rebound to $2.50 per gallon within one to two months.<\/p>\n","protected":false},"excerpt":{"rendered":"

Oil prices will likely continue a downward plunge in early 2016, before eventually picking up steam and increasing as the year moves forward. Over the last 18 months oil has dipped by 68% due to a massive supply glut. Oil on Friday fell to a seven-year low of $34.50. The collapse in oil pricing has […]<\/p>\n","protected":false},"author":39,"featured_media":61275,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8281],"tags":[7787,9324,7737],"class_list":{"0":"post-61274","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-oil-prices","9":"tag-oil-war","10":"tag-opec"},"acf":[],"wps_subtitle":"","_links":{"self":[{"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/posts\/61274","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/comments?post=61274"}],"version-history":[{"count":1,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/posts\/61274\/revisions"}],"predecessor-version":[{"id":71336,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/posts\/61274\/revisions\/71336"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/media\/61275"}],"wp:attachment":[{"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/media?parent=61274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/categories?post=61274"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/tags?post=61274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}