OPEC Collapsing Says Bank of America

Revelation 6:5,6 NCV When the Lamb opened the third seal, I heard the third living creature say, "Come!" I looked, and there before me was a black horse, and its rider held a pair of scales in his hand. Then I heard something that sounded like a voice coming from the middle of the four living creatures. The voice said, "A quart of wheat for a day's pay, and three quarts of barley for a day's pay, and do not damage the olive oil and wine!"

The world’s oil market is o the verge of collapse according to experts at Bank of America.

The bank warned that the OPEC oil cartel has essentially collapsed and that prices will fall below $50 dollars a barrel.  The weakest oil producers will be run from the industry and power will consolidate into a handful of producers.

“The consequences are profound and long-lasting,“ bank commodity chief Francisco Blanch told the London Daily Telegraph.

The move could drive many American oil producers out of the business.  At least 15 percent are unable to cover costs at the current oil price level and experts say that when prices fall below $55 a barrel over half the American producers will be forced to shut down.

The benefit then comes to middle east powerhouses such as Saudi Arabia which have large cash reserves that can help them weather a prolonged decline in oil prices.

Bank of America’s competitor Citibank has posted an opposite view, saying American shale oil producers can withstand as low as $40 a barrel.

3 thoughts on “OPEC Collapsing Says Bank of America

  1. Well if BofA is correct then American Oil Companies should just store the oil and use up Saudi Arabia’s Oil and then when the time come’s that the Saudi’s are drained the American Oil Companies will be there to supply America with the Oil it will need! They can also at that time charge Foreign Countries a Premium!

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