The End is Near - Crude Oil Price is Expected to Bottom Out Mid January 2015

The January 2015 delivery from WTI is at $57.81 a barrel. Rigs are shutting down after price fell below $60.00/barrel. Shale oil producers are beginning to hurt at current price levels while it wasn't so when it was $100.00/barrel.
See price chart attached for the price dip.
Thus production output decline is seen after what OPEC has decided in Nov 2014 - OPEC on 27th November 2014 decided to maintain production. Repeated statement on 10th Dec 2014 "...why should I cut production" Ali Al-Naimi. OPEC supplies 40% of global consumption.

2015 Oil producers budgets are streaming out and less are allocated or none at all for CAPEX. As price dips below $ 60.00 into the $ 50.00 range per barrel. These shale oil producers in US are hurting. They are now shutting down US oil rigs. So the war has taken its effect. The total effect will stabilize and we may see a stop in price drop by mid January 2015 or earlier.

However the effects on global economy is more of an after thought rather than an eminent recession, nothing to the effects of the 2008/2009 Sub-Prime loans issue that grounded global economy to a halt. Sentiments of fear of the unknown after crude oil price dip below $ 70.00 was an after effect. Oil related nations or companies incomes will be affected in 2015. The up stream and down stream petroleum industries too will see same fate. Having said this, travel industries, retail sectors and even non consumables are the beneficiaries of a dip in gasoline or crude oil price dip.
Never the less, sentiments should improve as no one is talking about the oil price dipping till its historical lows to the levels of $32.00 per barrel as this type of price range would see OPEC oil producing nations breaking up as none - OPEC nations, would want to carry such hurt... yeah people hurting their own pockets.

If ever it happen OPEC will see its end days as a 'cartel' manipulating oil price. May also see a Middle East war among these nations. Believe the middle eastern will not take it too kindly if ever price has to dip till the historical lows - a middle eastern war among the so called 'brothers' will shapely increase oil price to the levels of $ 140.00.

As always till then and the sun has set on the current oil price war, and sunrise on it  is now on the horizon for this ⛽️episode.

TjLim