Oil prices poised to fall as supply rises?

ubersonic

ubersonic

ubersonic

Soldato
Joined
26 May 2009
Posts
22,181
Just read this article:

http://www.businessinsider.com/iraq-oil-boom-2012-11

Which basically says due to oil production from Iraq poised to reach record heights and an overall increase in production by Russia, Colombia, Kazakhstan, Mexico, Brazil and more the global supply of oil will rise substantially over the next few years thus squashing prices.

Does this sound right to you guys? Or is the article just trolling? I'm hoping it turns out to be correct.
 
In real terms you'll see very little drop in the price of consumer oil. Might see a pence or two off at the pumps if we're lucky.
 
[FnG]magnolia;23203646 said:
Have substantial increases in production ever lead to sustainable and material drops in costs at the pumps?
Click to expand...

no, because as the price of crude goes down the UK government compensates by raising the fuel tax which gets them double bubble considering VAT is charged on top of that too.
 
I wouldn't be surprised, certain areas of the Middle East with large fields have been quite 'disrupted' over the past decade or so. Also, I imagine they've started implementing more modern techniques of increasing recoverable reserves.
 
At the moment fuel price is going up by 3p in January due to tax hike. If we are lucky the damage may be only 2p but I think oil companies will take the extra profit and find some excuse for not passing on any reduction in crude prices.
 
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