GREY:LSTMF - Post by User
Post by
xblueboyxon Aug 13, 2015 12:47pm
115 Views
Post# 24015285
comment on Rough's article
comment on Rough's articleRoughy, Thanks do much for posting this article. to me the most powerful part is this: "Comparisons of the current situation to the mid-1980s remain ludicrous. When oil prices collapsed in 1986 and remained low in real terms for 15 years, world oil supply exceeded demand by about 14 million b/d. This was nearly 25 percent of world demand of 60 million b/d. The current surplus of supply over demand is about 3 million b/d, or 3 percent. The IEA reports Q2 production was 96 million b/d but demand will reach 95 million b/d in Q4 of this year and 96.4 million b/d in Q4 2016. Depending on production increases, the surplus will fall to 1 million b/d then zero. This is nothing like the situation in the mid-1980s and to suggest otherwise is uniformed and irresponsible." I didn't realize the magnitude of the differential between supply and demand in the 80's. our is nothing compared to that one. our gap is already closing. market ignores this though.