After spending several years trying to get my little brain wrapped around energy issues, I’m to the point where I can interpret news reports and figure out for myself what to believe and what reports are just blowing smoke.
Consider the two following articles as illustrations of an article to believe and one that, um, well, ought to be taken with a large grain of salt.
10/2 – Wall Street Journal – An OPEC Output Cut Not Likely to Alter Oil Imbalance – Author cites “many” analysts who think that OPEC cutting production by a mere 700K bopd is not a large enough cut to resolve the oil oversupply, nor will the cut take place quick enough to have any impact.
Previous expectation was oil demand and supply would balance out by the end of 2016. Now the guessing is it will take until mid-2017.
The money quote is from Daniel Yergin (so you know my perspective, I have learned to pay close attention to him anytime he is mentioned):
Continue reading “Applying discernment to interpret news reports on crude oil”