Monday, December 1, 2014

Why has petroleum price dropped below $70.00/barrel?

Affordable power for the people

Rizal  Philippines  December 1, 2014

Petroleum oil products has breached the $70.00 per barrel floor price? The BE price is $80.00;  below that and the Arabs suffer? Why is this so?  We thought the price of petroleum  products are going down because of shortage (oil is to run out in 30 years) but several factors are at play why this is happening:

1. OPEC is not so solid anymore;   they are busting quotas in order to finance their govt which has no other source except oil;

2.  US is producing more energy;

3.  EU and the rest of the world have decreasing economic output and thus energy demand;

4.  The RE (renewable energy) is taking its toll on fossil, traditional fuel source.

We hope the drop continues.   From a high of P40.00/liter of diesel fuel, it is down to P34.00 and fares should go down too.

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