Santa’s Bag Of Goodies

When talking about energy companies and considering plunging oil prices, this title is very true. Oil prices hit a 5-1/2 year low this week, decreasing almost 50% since this summer. As you might be aware many different things caused this to happen and because of that santa’s bag is full of hurting oil companies that are trading very low right now. Everything started back in November with OPEC’s decision to keep the current production ceiling in an effort to undercut growing US Shale Production. A few weeks later, IEA (International Energy Agency) lowered 2015 global demand forecast by about 200,000 barrels per day (bpd). Let’s not forget that the US dollar rose to a 5 year high and Russia is nearing a recession point while Europe is struggling to correct their balance sheet.

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