Слайд 15 Reasons Oil Prices Could Jump
Слайд 2Oil Prices Have Fallen Off a Cliff
Oil prices are down around
50% since last summer and it’s starting to have an impact on producers and demand, which could mean higher prices around the corner.
Слайд 3Capital Spending Cuts
Oil explorers are slashing capital budgets to stay alive
RBC
Capital Markets expects global capital spending to drop 20% to $349 billion in 2015
Moody’s expects capital spending to fall 41% in North America
Eventually, this will lead to lower oil production and ease the industry’s oversupply of 1-2 million barrels per day
Слайд 4OPEC May Be Tired of Low Prices
OPEC will lose an estimated
$257 billion in 2015 because of low oil prices and it makes short-term economic sense to cut production now.
The cartel could raise oil prices by cutting production by 1-2 million barrels per day, something its smaller members are already pushing for.
Слайд 5International Unrest
After a decade of wars, revolutions, and terrorism that impacted
oil production in Iraq, Syria, Libya, and elsewhere the last two years have been relatively calm, coinciding with the oversupply of oil.
That could be changing with unrest in Yemen and ISIS spreading into Iraq and Iran. If international unrest impacts production prices could rise quickly, like they did last week.
Слайд 6Bigger Cars and a Better Economy
With oil prices near $2 per
gallon, SUV sales have skyrocketed in the U.S.
As a result, after a decade of declining oil consumption, we’ve used 4% more oil in the first two months of 2015 than we did a year ago.
Слайд 7China and India Could Boost Growth
One of the fears that has
driven oil prices down is slowing growth in China, which would lead to lower oil demand
If China’s growth stays strong and India continues to grow at 7%-9% in 2015 they’ll increase demand for oil
This is key because they’re in the top four in oil imports globally
Слайд 8Will Oil Prices Jump in 2015?
We don’t know exactly where oil
will be at the end of 2015, but if these factors play out prices could rise dramatically.
For consumers and investors there are literally billions of dollars on the line and Middle Eastern conflict, growth in Asia, and cost cuts in America may decide where oil heads from here.
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One bleeding-edge technology is
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