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Who: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
Port: Lake Pleasant, AZ
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22 August 2017 | Pago Pago, American Samoa
22 August 2017 | Pago Pago, American Samoa
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Why Oil Prices Continue to Slide

06 January 2015 | p
Kimball Corson
The quick answer is supplies are greater than demand, but that is economically obvious and doesn't tell us what is going on. What is going on is world economies are slipping and use less oil more efficiently and oil production has increased. Why the latter?

OPEC members cheat on their quotas, trying to make up in volume what they are losing in price. Sands and shale oil have come on line from Canada and the US. Turmoil in Libya and the ISIS are interfering less with oil production, as control of fields stabilize. But the big answer is the world economies, including the US -- which is more experiencing a financial boom than a boom in its real investment economy -- are tapering back on oil use quickly just as relatively too much oil shows up for sale. Producers are trying to sell more to make up for lower prices and that creates a vicious circle. But the big issue is the worldwide economic down turn.

China's economy is braking fast -- indeed, much too fast, increasing the chances of a hard landing -- quaint phrasing for a recession or growth so slowed it feels like a recession. The Eurozone is seriously slowing and facing a triple dip recession. Japan is in the doldrums, as the consensus is Abenomics has failed, and Germany, the world's fourth largest economy, is still pushing austerity as it barely hangs on itself. What this all means is those economies are using relatively less oil just when there is more of it because producers seek the same revenues to maintain their budgets.

The drop in oil prices mirrors drops on other raw material commodity prices as well, with similar producer reactions further feeding the declines.
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Vessel Name: Altaira
Vessel Make/Model: A Fair Weather Mariner 39 is a fast (PHRF 132), heavily ballasted (43%), high-aspect (6:1), stiff, comfortable, offshore performance cruiser by Bob Perry that goes to wind well (30 deg w/ good headway) and is also good up and down the Beaufort scale.
Hailing Port: Lake Pleasant, AZ
Crew: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
About:
Kimball Corson: I am a 75 year old solo sailor, by choice. However, I did take on a personable, but high maintenance female kitten, now a full grown cat, named KiKiPoo when she is sweet, or KatKatPo after she has just killed something like a bird or bat. [...]
Extra:
Although I was a lawyer and practiced law with good success for thirty years, creating significant new law, I never really believed in the law, the politics of law or in the over reaching self-interest of most lawyers I met. Too much exposure to Nietzsche and other good and seriously thoughtful [...]
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Profile

Who: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
Port: Lake Pleasant, AZ