[QUOTE=ombugge;176358]Unemployment benefits in Norway has nothing to do with the Unions or the Employer. It is a Government benefit and applies to all who are employed, or rather has been employed in Norway, or on Norwegian flag vessels (NOR)for a certain length of time. It is based on your previous pay and paid out only if you are actively seeking work through the system, but NAV is fairly flexible in it’s interpretation.
Despite a long term outlook on their per-barrel price of oil at $70 Brent and $64 West Texas Intermediate, analysts at investment research firm Morningstar Inc. expect the near term to continue to be “ugly.”
“OPEC spooked markets yet again in December by failing to signal any willingness to cut production and defend prices, even though weaker members states (like Venezuela) are hurting because of lower oil revenue,” equity analyst David Meats said in a Dec. 29 report.
As for when a recovery is expected, the answer is simple. Not any time soon.
The current supply and demand imbalance is such that oil production is effectively two years ahead of demand, he said. The much anticipated decline in U.S. production during the next few quarters won’t be enough on its own to quickly correct the global imbalance, he said.
Rather, events well beyond the control of North America will be key for the market to reach a normal state in which prices can respond before 2017. By Meats’ estimation, stopping the “lower for longer” trajectory of oil prices would be contingent on one or more of the following: Saudi Arabia reverses course and cuts production; global demand improves; or a geopolitical event in an oil exporting nation disrupts operations.
[QUOTE=Tugs;176447]Sounds a lot like the Oil Shortage in the 70’s, you know the one where there was not a empty Railroad Tank Car or Barge to be found in this Country.[/QUOTE]
That was when the US decided to form the Strategic Petroleum Reserve after the embargo in 73.
They filled everything they could find until the permanent sites were established. Now it’s held in salt domes.
It seems the two sides are now engaged in a PR war. The Saudis push the doom-and-gloom 'till 2020 propaganda in the attempt to scare investors thus bankrupting producers. The producers push the don’t-miss-the-big-recovery dream in an attempt to survive another day. I guess we can find articles supporting both arguments without looking too hard.
On a tangent, its a sick world when for almost everyone not in the oil business (which is most everyone) the energy costs for manufacturing and families go down and it ends up hurting manufacturing and families. I guess the only time business is good is when people are being skinned alive.
[QUOTE=DeckApe;176453]It seems the two sides are now engaged in a PR war. The Saudis push the doom-and-gloom 'till 2020 propaganda in the attempt to scare investors thus bankrupting producers. The producers push the don’t-miss-the-big-recovery dream in an attempt to survive another day. I guess we can find articles supporting both arguments without looking too hard.
On a tangent, its a sick world when for almost everyone not in the oil business (which is most everyone) the energy costs for manufacturing and families go down and it ends up hurting manufacturing and families. I guess the only time business is good is when people are being skinned alive.[/QUOTE]
The entire world has never recovered from the recession of 2008. China held on and kept commodity prices up for awhile but they finally ran out of money. The oil business once again drilled themselves into cheap oil backed by hedge funds with cheap US dollars. If you are a “free market” adherent you should be pleased. Oil is exactly the price it should be, the “market” is working. If you are a realist you know that while governments forced austerity on everyone but the creators of the great recession they also sowed the seeds of the stagnation of the economy. When the average USA family where both are employed make about $50,000/yr there is not much left to spend on stuff. Buying stuff is what working folks do when they have the money and that is what drives economies. The trillions of dollars given by the USA to Wall Street after the recession to cover their bad bets did nothing for the economy but did make a very few very rich. The same trillions could have been used to repair ancient infrastructure, roads, bridges, levees etc., which would have employed tens of thousands of people. Those people would have bought stuff and manufacturing would have increased to supply that stuff.
What is happening now is the end of the road. It will be MANY years before the EU or USA see an increase in the standard of living for the average person. Until average people have enough extra money to buy things there will be little need for oil barring a major disruption in the middle east.
[QUOTE=lm1883;176468]The agreement with Iran stipulates that, among other things, their oil is sold on the market in U.S. Dollars. Sanctioning them now so close to ratification would jeopardize the deal. Iran historically has been and will soon be again the dominant power in the Persian Gulf, so we have deal with them. They are the predominant force fighting ISIS and have the most influence in tIraq (oil reserves), Syria (energy transit routes), and Yemen (shipping lanes). All of the former are engaged in conflict. We have to be peaceful with them, and that’s that. If you think we can continue our foreign policy status quo you need to read Tengineers post again, he spells it out pretty well.
I wonder if we are seeing a pivot away from Saudi as a regional partner?[/QUOTE]
…and they are now angry with Saudi over the execution of a prominent Shi’a cleric. Things may get interesting.
No one has any way to accurately predict where oil prices may go, certainly not me. However, I will be surprised if oil does not take another dip under $25.
Brent is above $40 and rising: http://www.oilpubs.com/oso/article.asp?v1=18949
"Buying by speculative financial investors is boosting the price rise".
Is it a casino game, not based on actual “supply and demand” but on manipulation by the said speculators??