Mexican Media Brands
Lack of U.S. Storage May Drive Down Oil Prices
The volume of crude oil in storage in the U.S. is at an 80-year high, according to the U.S.
#economics
Share
The volume of crude oil in storage in the U.S. is at an 80-year high, according to the U.S. Dept. of Energy. The Associated Press says the country could soon run out of places to put the excess, raising the possibility of even lower fuel prices in the months ahead.
Since early January the U.S. has been gaining through production or imports at least 1 million barrels more oil than it's consuming. AP says existing storage facilities are projected to become topped up by mid-April.
The news service cites a commodities analyst who opines a continuing glut could drive down oil prices from around $50 per barrel today to as low as $20 a few months from now. Oil was at about $107 last June.
AP notes that other experts predict a significant, if more moderate, decline in current oil futures. Even so, that would drag down gasoline prices and prompt producers to further reduce output.
RELATED CONTENT
-
Mazda, CARB and PSA North America: Car Talk
The Center for Automotive Research (CAR) Management Briefing Seminars, an annual event, was held last week in Traverse City, Michigan.
-
Achieving Efficiency?
A look at on-road fuel economy changes over 92 years.
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.