Industry Executives Believe Oil Prices Will Remain Lower for Next Several Years

Oil is no longer as a "safe haven currency" right now, Do you believe that the oil prices will remain lower for this year??? what is exactly the bottom line??, yeahh at least for the next several years, industry executives believe prices will remain lower for longer. as described from U.S. oil production, In the U.S., production continues even as oil companies reduce the number of active rigs.

The fact is the number of U.S. drilling rigs dropped this week to the lowest level since 2010. However, crude stockpiles haven't been this high since 1930. Oversupply efforts by OPEC (the Organization of the Petroleum Exporting Countries) states, at this point is led by The worlds largest oil producer Saudi Arabia, are also likely to persist. In a strategic bid to dominate market share over rising prices, Saudi Arabia, the world’s largest crude oil exporter, is maintaining production to undermine its competitors. The Middle Eastern nation, flush with cash from foreign assets, is prepped to survive revenue declines.

Oil production lower prices would lead to supply disruption in Iranian, Iraqi, and Libyan markets, which all need sustainable oil prices in order to profit. Efforts to shore up investment capital to develop deep water reserves and shale deposits by countries like Argentina and Venezuela would prove uneconomic. Of course this can be worse, Lower prices also damage U.S. shale which may not be economically viable below certain levels.

In Global financial crisis and slow economic growth is predicted in most of the developed world and emerging markets, decreased oil demand is likely to follow. The worlds largest trading countries China especially is experiencing its slowest pace in decades, with economic growth decelerating in 2014 to 7.4%. But beware for the rebound, there are some factors that could rebound current oil prices. safe haven currency U.S. dollar could decrease in value. Oil as a "safe haven currency" commodities demand could easily rise in the wake of an unexpected weather event and climate change, threatening local supplies.

So what exactly the bottom line can acceptable for commodities market, Global oil production is outpacing consumption. OPEC members have not adjusted production levels accordingly despite a surplus in oil production, and the American shale boom is generating 4 million barrels/day (MMbd), up from 1.2 MMbd last year. Unless production is curbed or foreign demand grows as markets strengthen, oil prices are not likely to rise in the approaching months. This is great news for American consumers, but not so much for the country’s top oil CEOs. but some day oil prices will rebound for sure