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Iraq, May 18, 2016 
Oil prices rose on Monday, with the growing incidence of production disruptions in Nigeria, after the Bank of {Goldman Sachs remarks}, which indicated that "oversupply has ended, and the market has turned into a deficit."

The price of Brent crude global Brent blend, in the futures contracts mounted to $ 48.79 a barrel, up 96 cents, or 2.01% bhsp , as the Russian Sputnik website said.

The price of Texas mediator crude rose by 96 cents or 2.01% to $ 47.14 a barrel, marking the highest level since October.

The cases in production disruptions around the world, that stopped the supply of 3.75 million barrels a day , resulted to get rid of the oversupply, which lasted nearly two years, and led to falling prices by about 70% between 2014 and early 2016.

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Prices at the pump domestically already goin' up... we're payin' more in Florida already...

Gotta pay to switch to "Summer Blends", right....<_< Yuh... sure...

But the PPB goin' up over there should mean good news here for US Dinarians, alight, alright, alright....;)

SO we got THAT goin' for US !:D


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And $60 is being bounced around too, by Goldman Sachs!  Let's do this!!!

Oil could snap back bigger and badder than ever

Business Insider 
By Linette Lopez5 hours ago

When oil does come back, it could come back with a vengeance.

That is according to Jodie Gunzberg, the global head of commodities and real assets at S&P Dow Jones Indices.

But we're not there yet.

"From a returns perspective the price of oil could snap back bigger than ever," she told Business Insider in an interview from the Milken Global conference earlier this month.

"There's a lot of inventory to work through overall, but the magnitude of this comeback could be really big because there's a lot of problems to work through."

Here's why: According to Gunzberg, we're experiencing a problem in the oil market unlike any other we've seen in recent memory. It's a dual problem, with a lack of demand as well as an oversupply.

She pointed out that oil most recently came back from a demand crisis in 2009, and after that the commodity returned 200% in two years.

When oil most recently came back from a supply shock, in 1998, it returned 34% in eight months.

Again, we now have both problems.

Started from the bottom

All that said, we're already seeing signs that oil prices have bottomed. First off, energy equities have started outperforming the bonds of companies in the S&P 500, which suggests that investors are more optimistic than they were and are willing to take on risk.

Additionally, while the oil price has been volatile in recent months, we've seen 15% jumps over three-day periods. That's something Gunzberg says we also see only at a bottom.

The question is how long it will take us to claw back up.

Goldman Sachs thinks it could be a long while. In a recent note, analysts said the rebalancing — that is to say the place where oil supply starts to even out with oil demand — has begun. But it's complicated.

"Importantly, while the physical barrel rebalancing has started, the structural imbalance in the capital markets remains large, with $45 bn of equity and bond issuance taking place in the US this year," the analysts wrote.

"As a result, we believe that the industry still has further to adjust and our updated forecast maintains the same 2016-2017 price level that we previously believed was required to finally correct both the barrel and capital imbalances, and eventually take prices to $60/bbl."

It will be a while, but prepare for the snap back.

/ Peace Out

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I agree that, "Oil could snap back bigger and badder than ever."  With the recent plummeting of oil prices, many oil related companies (majors, too) have pulled investments slated to maintain or increase global oil production.  Oil reserves deplete over time.  So with no short to near term investment to replenish the global market demand for crude oil, there inevitably will be a spike upwards in oil prices sometime in the future until the oil related companies can replenish crude oil production levels to meet market demand.  With the investment projects on the shelves of oil related companies now, it may take some months to, say, a couple years to get these investment projects producing crude oil.  It does take time to roll out projects as well as get the crude oil related equipment manufactured.  The crude oil equipment manufacturers, too, have gone into dormancy and will take a little time to get staffed up and producing their products.  As a result, there may be a time where crude oil is substantially priced in the not too distant future.

May be a good thing for us with Iraqi crude oil priced at a premium at some time in the not too distant future.

One related trigger point could be the US dipping into the strategic oil reserves to stabilize the crude oil price.

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