The Current Crude Oil Price Story Is Still Ugly [Seadrill Ltd, BP plc (ADR), Chevron Corporation, Halliburton Company]

OPEC maintains that lower prices will slow competing supplies, goose economic growth, and thus incite demand.

Furthermore, OPEC ministers and delegates blame non-OPEC producers – including Russia, Mexico, and Kazakhstan – as well as the U.S. shale boom for the oil market glut.

U.S. oil production has soared over the last six years. It’s gone from around 5 million barrels per day to more than 9 million barrel per day. Credit goes to explosive shale oil output, mostly from North Dakota and Texas regions. In fact, shale production is expected to help the United States become energy independent by 2020.

Despite lower crude oil prices, U.S. crude production is projected to grow this year. The EIA expects U.S. crude oil production to average 9.3 million barrels per day in 2015, up 0.7 million barrel per day from 2014.

Not all investors fully understand the factors affecting current crude oil prices. According to Money Morning Global Energy Strategist Dr. Kent Moors, worries about a supply glut are vastly overstated. In addition, the worst of the price crash is likely over.

“Crude has the ability to quickly self-correct, which is why long-time oil veterans aren’t worried about falling prices,” said Moors. A modest rebound is taking shape, and for investors, that means a new wave of profits.

Money MorningWritten By Diane Alter From Money Morning

We’re in the midst of the greatest investing boom in almost 60 years. And rest assured – this boom is not about to end anytime soon. You see, the flattening of the world continues to spawn new markets worth trillions of dollars; new customers that measure in the billions; an insatiable global demand for basic resources that’s growing exponentially; and a technological revolution even in the most distant markets on the planet.And Money Morning is here to help investors profit handsomely on this seismic shift in the global economy. In fact, we believe this is where the only real fortunes will be made in the months and years to come.

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