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Oil Update–March 2016

As a follow-up to my February post regarding oil prices, I am still not optimistic about a quick recovery.

As we have seen, there was no March meeting for OPEC and some non-OPEC countries to agree to a production freeze. Now, the latest plan is for those countries to meet in the Qatari capital of Doha on April 17. Assuming that the meeting does proceed and that they do agree to a production freeze, I am unsure of the benefits. That agreement would just freezes oil production at or near maximum levels. In other words, the world would remain awash in surplus oil.

Compounding the problem, according Janet Yellen’s speech yesterday (New York Times—a subscription might be required), global economic growth remains sluggish.

While I remain skeptical of a quick recovery, I am hopeful that oil prices won’t fall much further.

{ 2 comments… add one }
  • Zahra April 19, 2016, 10:07 am

    With all the respect to oil price posts, I hope the post for April is going to be a photography post 🙂 I mean April is so beautiful it deserves to be photographed, doesn’t it? 🙂

  • Stecyk April 19, 2016, 11:29 am

    I guess we’ll just have to wait and see, though it is getting late in April. I haven’t taken any pictures yet. We’re enjoying a hot April so far, with today’s temperature hitting plus 28C. I will have to find something to photograph if I am going to post a picture for April.

    The trees are just beginning to show their leaves. Most everything else is still fairly brown from the winter. We haven’t had any rain yet.

    Let’s see what happens.

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