Brent futures are trading at levels not seen since 2010, leaving traders asking why? Analysts are pointing to a grimmer economic outlook globally. However, the current situation can be seen more in terms of excess supply than weakening demand.
As crude oil prices tried to bounce back from a five-year low, oil companies and OPEC try to adjust to low oil prices. BP earnings kicked off the big oil earnings season and they could have been worse.
Removing export restrictions would increase domestic production-—8 million barrels per day in April 2014—-because of increasing domestic crude oil prices. Estimates range from an additional 130,000 to 3.3 million barrels per day on average from 2015 through 2035.