Almost $50

By Isaac Cohen*

After falling to the lowest level of $26 per barrel in February, oil prices have almost doubled to close to $50. Several factors are contributing to stop the price decline, such as supply disruptions in Nigeria, political instability in Venezuela and a weaker dollar. Additionally, oil and gas production in the United States is decreasing, because of low prices.

Oil production in the United States peaked at 9.7 million barrels per day in April 2015 and it is projected to decline by one million barrels per day by the end of this year. The reduction in production is better illustrated by the number of active rigs drilling for oil. According to data provided by Baker Hughes Inc. quoted in the Oil &Gas Journal, as of May 13, the number of active oil rigs in the United States reached 406. In all, 1514 oil drilling rigs have been closed since early December 2014.

However, there may be light at the end of the tunnel. Prominent oil analyst and historian Daniel Yergin, in a Wall Street Journal op-ed, anticipates that “by autumn declining production and rising demand should put the market roughly in balance,” with prices remaining at around $50 per barrel.

*International analyst and consultant. Commentator on economic and financial issues for CNN en Español TV and radio. Former Director, UNECLAC.

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About Ramón Jiménez

Ramón Jiménez, actual Managing Editor de MetroLatinoUSA. Periodista que cubre eventos de las comunidades latinas en Washington D.C., Maryland y Virginia. Graduado de la Escuela de Periodismo de la Universidad del Distrito de Columbia. Galardonado en numerosas ocasiones por parte de la Asociación Nacional de Publicaciones Hispanas (NAHP) y otras organizaciones comunitarias y deportivas de la región metropolitana de esta capital. También premiado en dos ocasiones como Mejor Periodista del Año por la cobertura de la comunidad salvadoreña; premios otorgados por la Oficina de Asuntos Latinos del Alcalde de Washington (OLA) y otras organizaciones. Ha sido miembro del jurado calificador en diferentes concursos literarios, de belleza y talento en la región metropolitana. Ha visitado zonas de desastre en Nicaragua, Honduras y El Salvador e invitado a esos países por organizaciones que asisten a personas de escasos recursos económicos. Antes trabajó en otros medios de prensa de Virginia y Washington, D.C., incluyendo reportajes para una agencia noticiosa mundial.

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