Wednesday, April 1, 2015
Texas shale production begins to decrease
The laws of supply and demand do work:
State regulator Railroad Commission of Texas just released data for production rates in January. Showing that output of both oil and gas took one of the most sizeable monthly declines in recent memory.
Oil output during January fell 11%, or 8.5 million barrels, as compared to the previous month.
The scale of the monthly decline is notable -- being much deeper than during any of the previous months since oil began its decline last summer. Up until now, oil output had been largely holding steady.
Low prices are the cure for low prices. This is one of the reasons I got long Russia again. I have also been getting more and more long various oil stocks and some other stocks that will benefit from a higher oil price. I will be featuring these new picks over the next few days.