The oil industry has seen quite a bit of fluctuation in the past few years. Investors have learned that sudden and drastic changes are the standard in this industry. Thankfully, this means there are opportunities to make money in the oil market. Bold predictions have been made for twenty seventeen, it’s only a matter of time until investors see whether those predictions come true. There are a few things that investors can depend on. For one, Saudi Arabian oil production has maintained and even increased. This means prices have stayed reasonably low but maintained profit margins for resellers and refiners.
Oil production standards were changed in early two thousand fourteen thanks to policy changes Organization of the Petroleum Exporting Countries. These changes caused a bit of commotion in the industry. These changes may have contributed to the oil crash in two thousand sixteen that resulted in many resellers and even some refineries closing up shop. Prices dropped as low as twenty dollars per barrel but have climbed to fifty dollars per barrel. The industry underwent more changes in two thousand sixteen, resulting in increased production in Saudi Arabia.
Some regions are experiencing changes in the opposite direction. South American oil production has suffered due to local political issues. While prices stay in a reasonable price bracket in the middle east, the price has jumped to as much as one hundred eighty dollars per barrel in South America. The difference in price between these OPEC members demands changes in global policies, which means more changes are on the horizon.
Low oil prices are driving are forcing producers out of the market. A drop in supply is expected with all the problems in South America and Libya. Interruptions in production and refinement may lead to other problems that could force companies out of the market. The need for changes is obvious, but many experts are unable to see the outcome of these changes in the near future. Investors need to be aware of these changes and learn how they can protect themselves against loss. They can read online and see what experts have to say.