You may have noticed the low oil prices at the pumps lately, as the price of oil is at a low not seen since 2004. One of the main reasons is that the world’s oil producers, such as Russia, OPEC, and the U.S., are producing oil at historically high or near high rates.
The price of oil could remain low if current production increases. An increase in sales from Iran in early 2016 is expected once sanctions are lifted, while a recent move to end the United States’ self-imposed 40-year-old ban on crude exports, will allow the U.S. to sell some of its excess production adding to the global supply.
The reason for the over-production of oil among countries can be contributed to an “oil war”. Many middle-east countries, mostly those of OPEC, want to keep prices as low as possible to drive out as many producers as possible, especially the up and coming oil producers in the U.S. Less competition would allow OPEC to remain a controlling party in the global supply and price of oil.
Although low oil prices hurt oil companies and oil producing nations like Russia, the lower prices are a net positive for consumer based countries like the U.S., because a lower oil price means more money for consumer spending.
I am a new Securities Analyst with the bank, having started as an intern this past September, and accepted a part-time position in early December. I am a military veteran and full time Morningside College student. I am expecting to complete my degree in Business Administration in December 2016, and hoping to remain with Security National Bank full time following degree completion.
Originally from Baltimore Maryland, I left when I was 18 for the U.S. Army, and spent 2001 through 2014 as a communications specialist and eventually became a warrant officer and helicopter pilot, having served in Iraq for 2 years and Afghanistan for 1 year. I left the service and moved to Sioux City Iowa in June 2014. I married my wife Kimberly in July 2015 and we are expecting a baby girl in May 2016.
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