Goldman Sachs: the depletion of oil stocks have begun
Goldman Sachs: the depletion of oil stocks have begun
With the price of Brent crude oil futures to $ 40 per barrel, the International Energy Agency sees light at the end of the tunnel, while Goldman Sachs Group identifies signs of improved prices. In spite of this, many analysts warn that this recovery is going to explode as soon as prices rise to a level sufficient to maintain the flow of US crude.
IAEA remember that oil production outside OPEC is set for the biggest drop since 1992, and therefore Prices have reached a minimum.
The barrier of 50 dollars
However, Brent crude may suffer to overcome the barrier of 50 dollars a barrel this year because any rise in price will delay another reduction of the required output to balance the market.
Although US crude production declined by 5.5 percent since last summer, but the depletion of stocks filled process has just begun, according to Goldman Sachs. This bank, which predicted decline in the price of oil to $ 20 a barrel, expect the need to keep prices low-lying enough to starve the capital producers, and production losses only necessary to get rid of the oversupply will not occur.
The debate on the price of $ 50 a barrel, which represents an upper limit of the ore is the wrong debate, says Sanford C. Bernstein Foundation, which sees the return of prices to $ 70 a barrel next year. She adds that the oil industry will not remain profitable at current price levels due to the loss of $ 3 per barrel last year, even with the product companies to reduce costs.
The rise of temporary price because of failures of the Iraqi oil pipeline will fade, while talks between the (OPEC) countries not members of the organization on the freezing of production will have a small effect, but Iran insists its rejection of any freeze to regain about one million barrels of exports after the lifting of sanctions.
However, the direction of prices for the current year is similar to what it was last year. Fajam West Texas Intermediate rose 40 percent from March 2015 because of the collapse of American exploration work, stopping at $ 61 a barrel last summer with the continuation of the US production flow. US crude fell to almost $ 40 in August, was surprised by the flexibility of the US production of OPEC countries.
Resulting costs fell to describe OPEC production expected to fall outside its by 700 thousand barrels per day as «more ambiguous». As a result of efficiency gains, the price range that allows the production to be profitable has fallen by $ 10 since last year to $ 45-55 a barrel.
There are a group of wells stalled work stretches between southern Texas to the Rocky Mountains can be completed as soon as the price goes up to an appropriate level. This reserve is associated manner of hydraulic fracturing, or cracker, used by the shale oil sector.
* Grant Smith / site Blombergthamr Alheims
Imported goods of course, is the dominant character in the local market so forget the new generation of young domestic product was industrially or agriculturally, and even in the tourism Those who have information about tourism in neighboring countries to be more than usually Bamaalmna their knowledge of religious tourism and traditional wings.
The Iraqi market is absorbed by industrial and agricultural product Btrfait (plant and animal), is not able to pay attention to the inside and the treasures of the three sectors.
Since we're not the only ones who are engaged in this turn toward integrated economy internally minimal.
For example, Brazil has been at the forefront of industrialized countries newly Although this process any reliance on the domestic market spawned a bureaucracy and corruption, blatant, and a lot of waste, but also resulted in rate of 7 percent annual growth rate means that import substitution was a meaningful process for a long time in terms of public spending Find an application on the domestic front, where he was the Brazilian public sector deals with about half of the total domestic production, according to published studies.
Corruption has been rampant before this period, as well as works in both directions, whether this economic pattern was heading to the outside or the inside, this is his last objective its factors, but it is important that growth internally reached 7 percent, which is a very respectable rate in spite of everything. Which enhances our domestic market also is that of a formal public sector now has more than four million and three million employees and retired employees of care goes with them, which is directly proportional to increasing violence ((Aldaasha)) and its consequences.
This monthly flow of money increases the dynamics of the local market, which absorbed the indiscriminate import wastes resulting from money laundering.
It is almost this constant (salaries and pensions, known to its members the government) is betting on the domestic market in the foreseeable future on the national product that we were exported as a result of the weakness of the domestic market at the time to the limited money supply in a timely manner with a fence of custom respectable prevents abortion domestic product which was the identity of economic Iraq before the oil.
Maybe Ananaj to discuss the implementation of mechanisms to boost domestic product as much as we need the will of the repulsive intervention backed by the forces of corruption are still active, they are the essential foundation upon which the indiscriminate importation, which constitutes a dam and managed to keep the flow of our national currency to complement its internally, not only economically but also extends to restore social restructuring what new lists still exist do not need is a flick.
And thus it stops bleeding currency auction (random icon economic) and get back to usual opening credits and foreign exchange operations incomplete Chiefs as a filter for impurities and isolate the parasites inside and out and back the rhythm of the harmonious performance of the three sectors to become the locomotive for the rest of the activities.