Crude oil prices have plummeted 20 percent since February, the most dramatic first-half slump since 1997, and inventory remains about 340 million barrels above the five year average.
In short, the agreement between OPEC and its non-OPEC allies to slash their production by 1.8 million barrels per day has failed to rebalance the oil market and boost the commodity’s price.
Oil inventories increased at a rate of 1 million barrels per day during the first quarter, according to Morgan Stanley estimates. And while seasonal demand on the horizon should chip away at the excess for the rest of the year, that’s temporary.Break-even costs: for the archives --
US energy mix: for the archives --
- nuclear, biomass, and hydroelectric all flat
- nuclear will gradually decrease over time
- solar, wind (will tend to flatten over time; rate of growth will slow)
- the big story no one is writing about: the loss of all that nuclear power
- the big story everyone is writing about but not understanding the implications: the loss of coal