Oil Prices Slump to 11-Year Lows in Asia and Europe

[vero]

LONDON — Oil prices hit 11-year lows in Asia and Europe on Monday, as a glut of crude on world markets and the recent global climate accord continue to depress fossil-fuel prices.

Brent crude oil, the international benchmark, settled at $36.51 a barrel on Monday in Europe.

Analysts say there is little to restrain continued price declines in the near term. Prices are down about 15 percent so far in December, after an OPEC meeting failed to produce measures to restrain record-high production. That meeting was quickly followed by the United Nations climate accord in Paris, which aims to reduce the world’s reliance on oil and other carbon-emitting fuels.

The latest factor weighing on prices has been unusually warm weather in the United States and Europe, which is reducing winter demand for heating oil and leading to rising stockpiles of oil products. The expectation that the American government may soon lift a decades-old ban on exports of crude from the United States may also be affecting prices.

“We are probably going to see the weakness run at least through January,” said Richard Mallinson, an analyst at Energy Aspects, a London-based market research firm.

Analysts say that crude oil prices are likely to remain under pressure in the spring, when refineries typically shut down for maintenance, weakening demand.

While few analysts had expected OPEC to decide to cut production when the group met in Vienna this month, the signals from the meeting appeared to show that the cartel, which accounts for about 30 percent of world oil production, was not even close to coming up with a plan to try to manage the market.

“Even compared to the low expectations, the meeting sent out negative signals,” Mr. Mallinson said. “There was no unity and nothing that looked like the basis for more coherence next year.”

While disgruntled OPEC members like Venezuela muttered about the “catastrophe” caused by rock-bottom oil revenues, Saudi Arabia, Iraq and other gulf countries are expected to continue to produce at or near record levels, and new supplies are expected from Iran, assuming international sanctions are lifted next year

http://www.nytimes.com/2015/12/22/business/energy-environment/oil-prices-opec.html?ref=world

[tyz]

Goldman Sachs predicted a price of $20 in 2016.

In my view, prognostic symptoms of a new world economy crisis starting in 2016.

[countryfree]

Yes, it's really stunning when you think about it that one BTC is worth more than 11 barrels of oil. Hey, I'm a longtime BTC supporter, but I think oil should be more valuable. It's just more useful, and you don't even need the Internet to use it.

[Hazir]

Yes, it's really stunning when you think about it that one BTC is worth more than 11 barrels of oil. Hey, I'm a longtime BTC supporter, but I think oil should be more valuable. It's just more useful, and you don't even need the Internet to use it.

Well, price of goods is often not about usefulness or something being more valuable. Look at art, is this more helpful for people? And some pieces are insanely expensive, same with antics etc.
If bitcoin is valued more than oil it is only because people think it is worth it.

[bryant.coleman]

Goldman Sachs predicted a price of $20 in 2016.

In my view, prognostic symptoms of a new world economy crisis starting in 2016.

Honestly, I don't think that $20 is possible (perhaps with the exception for a short-term, such as a few hours). If such levels are reached, then most of the oil companies will be bankrupt, and the production will be stopped. What will happen if the crude oil production stops? The prices will jump back to the $100 per barrel levels!

[randy8777]

Goldman Sachs predicted a price of $20 in 2016.

In my view, prognostic symptoms of a new world economy crisis starting in 2016.

i always take predictions that come from goldman sachs with a grain of salt. $20 is insanely low. i think it will fall a bit further, but not below $30. that's where it will bounce back. at least, that's what i think.

[fonenumba]

AFAIK, the cost of oil extraction is about $8 for OPEC countries, so it wont be a big dream $20 price level. The FED interest rate will increase the dollar value against developing countries currencies. So, even if the oil price decreases in terms of dollar, it wont change too much becasue of overvalued dollar. 

And also I believe one of the reasons for this price decrease is racing out of the shale gas producers.

[AtheistAKASaneBrain]

Yes, it's really stunning when you think about it that one BTC is worth more than 11 barrels of oil. Hey, I'm a longtime BTC supporter, but I think oil should be more valuable. It's just more useful, and you don't even need the Internet to use it.

That's pretty subjective. For someone with an electric car oil is pretty useless, and Bitcoin is way more useful, and the trend is we will see less and less oil usage because oil kills the environment, we will use electric cars instead. Bitcoin is clean and we will see more and more usage as oil deprecates.

[~Bitcoin~]

oil price is going down but in Nepal its price is doubled in blackmarket due to indian blockade from past 4+ months without reason.
Seems to be quite unrelated to this thread but that is the proof which show how bigger country are dominating economics of small developing countries.

I also can't find the reason behind this massive downtrend on oil price and i don't think this would affect bitcoin price alot.

[Xianantung]

AFAIK, the cost of oil extraction is about $8 for OPEC countries, so it wont be a big dream $20 price level. The FED interest rate will increase the dollar value against developing countries currencies. So, even if the oil price decreases in terms of dollar, it wont change too much becasue of overvalued dollar. 

And also I believe one of the reasons for this price decrease is racing out of the shale gas producers.

Both the shale oil operators and other high cost producers will be affected. Most notably, the UK North Sea oil producers.

[btcdevil]

oil price is going down but in Nepal its price is doubled in blackmarket due to indian blockade from past 4+ months without reason.
Seems to be quite unrelated to this thread but that is the proof which show how bigger country are dominating economics of small developing countries.

I also can't find the reason behind this massive downtrend on oil price and i don't think this would affect bitcoin price alot.

their is a reason for india blockade as the nepal government started to take help from china and helping him against india, then what you think india will just sit and see. the recent government is not accepting it, so for that the nepal public is affected.

their will be reason for all and the reson for downtrend is the actuall price of oil is way to small so this price is also good for them, and one of the user told correct that, even the oil price is going down same time they are increasing the value of dollar in other countrys so it is just adjusted for other countrys so no big effect .

[avw1982]

oil price is going down but in Nepal its price is doubled in blackmarket due to indian blockade from past 4+ months without reason.
Seems to be quite unrelated to this thread but that is the proof which show how bigger country are dominating economics of small developing countries.

I also can't find the reason behind this massive downtrend on oil price and i don't think this would affect bitcoin price alot.

In Asian Pakistan, India, Nepal and other countries are facing the so many Economical problems because of Oil importing from the Arabian countries with heavy taxes by government.Its a main cause for price of oil in asia

[AndySt]

American shale oil, OPEC inability plus uncompromising plus Saudi Arabia plus the expected return of Iran to the market give unpredictable results. Abnormally warm winter this year adds its part. Bloomberg even wrote about part of the futures for $ 15 for next year.

[countryfree]

Yes, it's really stunning when you think about it that one BTC is worth more than 11 barrels of oil. Hey, I'm a longtime BTC supporter, but I think oil should be more valuable. It's just more useful, and you don't even need the Internet to use it.

That's pretty subjective. For someone with an electric car oil is pretty useless, and Bitcoin is way more useful, and the trend is we will see less and less oil usage because oil kills the environment, we will use electric cars instead. Bitcoin is clean and we will see more and more usage as oil deprecates.

I'm very familiar with electric cars, and they're probably the future but those already on the market do not answer the needs of the average driver. Electric cars are nice if you live in London and don't drive much, but if you drive a lot cross-country the way I do, an electric car couldn't do it.

[The Sceptical Chymist]

Yes, it's really stunning when you think about it that one BTC is worth more than 11 barrels of oil. Hey, I'm a longtime BTC supporter, but I think oil should be more valuable. It's just more useful, and you don't even need the Internet to use it.

Uhhh, I'm glad it's not more valuable, though I agree it's more useful than bitcoin.  Much of what we buy is dependent on the price of oil--remember when it was $150/barrel a few years ago?  Gas prices in the US were over $4/gallon and it was even worse in other countries.  I'm very happy with low-priced oil, thanks.

[Newmba]

I don't think that's gonna last forever, there are some important geopolitical games behind the lowering of oil's price, the same games could make it skyrocket

[criptix]

AFAIK, the cost of oil extraction is about $8 for OPEC countries, so it wont be a big dream $20 price level. The FED interest rate will increase the dollar value against developing countries currencies. So, even if the oil price decreases in terms of dollar, it wont change too much becasue of overvalued dollar. 

And also I believe one of the reasons for this price decrease is racing out of the shale gas producers.

This and the ending iranian oil sanction.

https://www.cia.gov/library/publications/the-world-factbook/rankorder/2241rank.html

Average crude oil production cost is around or less then 15$/barrel.

It is estimated that iran will double its production in the short term after the lifting of the sanctions.

20-30 is very possible

[Blue_Tiger73]

Yes, it's really stunning when you think about it that one BTC is worth more than 11 barrels of oil. Hey, I'm a longtime BTC supporter, but I think oil should be more valuable. It's just more useful, and you don't even need the Internet to use it.

Yes. Is wonderful to see that the Bitcoin price is this high compared to oil. But I want to see the price of Bitcoin reach $1,000.

[mikewillda]

Yes, it's really stunning when you think about it that one BTC is worth more than 11 barrels of oil. Hey, I'm a longtime BTC supporter, but I think oil should be more valuable. It's just more useful, and you don't even need the Internet to use it.

Yes. Is wonderful to see that the Bitcoin price is this high compared to oil. But I want to see the price of Bitcoin reach $1,000.

Your target of $1000 will be reached in the middle of next year. The rise is mainly due to block halving.

[thejaytiesto]

Yes, it's really stunning when you think about it that one BTC is worth more than 11 barrels of oil. Hey, I'm a longtime BTC supporter, but I think oil should be more valuable. It's just more useful, and you don't even need the Internet to use it.

Yes. Is wonderful to see that the Bitcoin price is this high compared to oil. But I want to see the price of Bitcoin reach $1,000.

Your target of $1000 will be reached in the middle of next year. The rise is mainly due to block halving.

Next year will be fun. I've seen some really bullish predictions coming from mainstream media as well, in retuers I saw news of a 4,700 dollar surge in 2016, good times to be a holder.