¿Gas for a penny?

What will be the limit of falling oil prices ?, raises the Slon website, analyzing the factors behind this global trend and many experts forget. 

 In view of the continuing decline they have suffered oil prices, many experts predicted an early start of the opposite trend, ensuring that low prices lead to production becoming less profitable, and the consequent reduction of supply and competition would cause a new growth cycle . However, these views again and again proved wrong because no one considered an important factor that differentiates the oil market from other commodity markets, publishes the Slon portal. Speaking about an inevitable reduction in production if prices are below the cost price, experts forget who the main players in the market and what is their motivation, says the article. While the 10 most expensive oil companies in the world, among which are ExxonMobil, PetroChina, Chevron etc., it is up only 14 percent of world oil production, the rest of the market belongs to companies under direct state control or indirect . Among the ten largest companies reserves there is none that does not belong to the government, says the portal. Another important factor is that in most of these countries, oil makes up more than 90 percent of exports. Thus, no matter how low the prices, none of the major producing countries begin to reduce production because it is better to get low income do not get any and lose market presence. One possible answer to what might happen in the oil market in the near future can be found by observing what has happened in the financial markets in recent years, said Slon. "Until recently, the key interest rates of the central banks vacillated around zero, while interest rates of deposit of the European Central Bank, the Bank of Japan, as well as national banks of Switzerland, Sweden and Denmark they are poor , "writes the portal, adding that in this way the central banks try to revive the economy of their countries. Does something similar may happen in another area controlled by the State ?, the author of the article asks. "Can it happen that gasoline costs $ 0.01 per gallon, and that oil is accepted at ports and border consumer countries, producers pay between 2 and 3 dollars per barrel?" He adds. Although such a situation it seems incredible, the author recalls that "negative interest rates 50 years ago also seemed a Christmas fantasy".