The current crude oil crisis is about to cause major chaos throughout the globe. Every industry that is related to oil is about to feel the crunch. The economy is about to be thrown into a death spiral if oil prices aren’t corrected soon.
This doesn’t just affect the oilfield, it involves every single industry that has anything at all to do with oil, whether it’s manufacturing plants that use oil to create products, or your local asphalt company, everybody is going to feel the pinch eventually. This may be the most important thing you read all month right here.
The once thought impossible is unfolding right before our eyes. The U.S. Oil and Gas Industry that was once thought of as too big to fail is crumbling apart one bankruptcy at a time. We are nearing 50 oil companies fallen bankrupt due to low oil prices since just last year. The industry as a whole is about to have its day of reckoning.
Wednesday was a huge day for the oil industry, actually this whole week is turning out to be huge. U.S. oil prices jumped nearly 8% on Wednesday following an unexpected massive drop in crude inventories. Just when everybody thought it was game over, we’re moving in the right direction.
Breaking news early Tuesday morning brings the good news everybody in the oil and gas industry has been waiting for. OPEC has finally cracked under pressure. We knew it was a matter of time. OPEC is ready to play ball.
In a sign of tentative cooperation among major oil producers, Qatar, Russia, Saudi Arabia and Venezuela announced a plan on Tuesday to freeze output at current levels, a move intended to help bolster energy prices. The deal is contingent on other producers joining in on the freeze.
Last week the price of oil made some small gains, nothing major but a move in the right direction nonetheless. On Monday oil prices were holding steady, holding onto last week’s gains on speculation that OPEC may be ready to deal. With the massive amount of oil in stock, oil prices have dropped to the lowest we’ve seen in over a decade.