Eagle Ford Minute December 26
by Randy Watson Email Randy
Natural gas futures slumped below $3 per million British thermal units for the first time since 2012 on speculation that record production will overwhelm demand for the heating fuel. Futures have slid 29 percent this year. In the absence of extreme weather, rising production will leave inventories at an all-time high. U.S. gas production may climb 5.5 percent this year to a fourth consecutive record, government data show.
Low gas prices may eventually lead to provide some sort of floor by prompting power generators to switch from burning coal. In the meantime, we are going to see bears take over this market. Read More
Much has been made of the oil price war theories lately, whether it is a direct competition between the United States and Saudi Arabia, or whether the two are in collusion to cripple the Iranian and Russian economies, there is another aspect to the current situation that is worth considering.
Should prices remain at current levels, the cartel could lose almost $400 billion in annual revenue by 2015, a 50% drop from 2013 levels. While several of the Arab member states have huge currency reserves to support their economies, this level of decline in revenue would be completely unsustainable for some of the more at-risk members of the cartel such as Iran, Nigeria, and Venezuela. Read more
For more information visit nobullradio.com This has been Randy Watson of the No Bull Radio Network reporting the Eagle Ford Minute from our KIBL 1490-AM Beeville studio location.
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