Oil Down Again, Today
- Thread starter gcal
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There's such a glut right now. I don't think it will get back to where it should be until the producers get together and agree on production limits, especially now that Iran is coming back online. I absolutely think that the low cost producers want to drive their high cost competitors out of business and will not allow prices to get high enough for them to be profitable, again. I have been seeing estimates of around $55-60 a barrel as the eventual target price, tho it could take a while to get there. That still means we aren't going to see $4.00 gas again for a long, long time.
Canine
Well-known member
I don't know.Oil prices on CNBC are showing a price of $ 36.40.Thats up from a low of $33 a few days ago.
In no way to be political, but I believe after the election cycle and a bit of unrest(blowing up)around the export hubs in the middle east. prices will come up.
This seems to be the cycle in MY opinion, The US opening up export to foreign countries will not help the glut of oil on the market, The viable option for those
in control is to get some oil off the market or stop the shipment of it.
Simple supply and demand in action
This seems to be the cycle in MY opinion, The US opening up export to foreign countries will not help the glut of oil on the market, The viable option for those
in control is to get some oil off the market or stop the shipment of it.
Simple supply and demand in action
USACelt said:
There are so many things that can affect oil prices. Some of them one can anticipate. Some of them come out of nowhere - an oil rig explosion, the death of a political leader. Every turn of events is accompanied by hysteria, with investers running around like their hair is on fire. I just try to buy major players as low as I can during the panics and sell during the euphoria when everyone is riding high.
Fracking and improved production from old fields is the player right now, At least for North America. China has a decreased demand right now with the receding economy there.
I'm not a fan of OPEC but can not really blame them for not wanting to reduce production to keep a market share.
Although I think the timeline for them has run its course. with Iran coming on line as well post haste. The oil surplus will be even more than now.
Yet again Supply and Demand sets the current market
I'm not a fan of OPEC but can not really blame them for not wanting to reduce production to keep a market share.
Although I think the timeline for them has run its course. with Iran coming on line as well post haste. The oil surplus will be even more than now.
Yet again Supply and Demand sets the current market
lol Ya I am sure nobody in the think tank that controls such things , ever thought for a second cheep oil would be good.
As much as I hate to admit cheep oil is bad for the US economy. It seems to stifle growth on many levels. Sure the average Joe likes filling
the tank for half as much. but It seems to me everything else slows down.
As much as I hate to admit cheep oil is bad for the US economy. It seems to stifle growth on many levels. Sure the average Joe likes filling
the tank for half as much. but It seems to me everything else slows down.
GotSmart
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USACelt said:
Actually it is the opposite. If a consumer is used to paying $200 for a month of gasoline to get to work suddenly has an extra $80 in their pocket~~~
The economy benefits.
For many people the price of gasoline is what keeps them from dining out, buying new cloths, upgrading a car. And so on.
While it might feel good to swap dollars, to the average Joe. The GPD shrinks with a declining crude price. Exporters of oil really get hit hard.( look at Russa).
The current trend is a extreme example. It would seem consumers right now are not making up the deference in energy savings.
The current trend is a extreme example. It would seem consumers right now are not making up the deference in energy savings.
USACelt said:
Is that the same thing tank that told our Idiots In Office that attacking Iraq and grabbing its oil fields would be a walk in the park? I think you give the think tanks way too much credit for any sort of ability to think.
Canine
Well-known member
Fool me once,shame on you.Fool me twice.............You can't be fooled again.Yeah,same group.
Nah, I don't give them any intelligent credit value at all. Too many cooks in the kitchen lol. The constant effort on their part to manipulate the economies is what keep the highs going higher and lows going lower.gcal said:
Blame OPEC, and look who's all in it and you'll be surprise. Their a government by themselves.
We were told we will be oil independent in the last election. Now we're dependent on the far east. They know how to get to us, don't they. CHEAP OIL!!
We were told we will be oil independent in the last election. Now we're dependent on the far east. They know how to get to us, don't they. CHEAP OIL!!
You are correct, I never said they were.gojo said:
OPEC sucks don't get me wrong! but in a model of capitalism they seem to being a good job. Russia just like other countries(USA included) upped production.
OPEC has no interest in giving away market share, and has not lowered production just because everyone else has joined the market. Those cats can and will
produce oil for less money(fracking is costly) than everyone else at this point, they have no EPA or other groups making it hard or expensive to put product to market.
Thus Russia and other producers(USA)GDP will suffer, and badly. Have you looked at the value of Russia currency? and its fall because of revenue loss directly related to
the current crude price?
Gotsmart, Yes.
Do you think that $60 saved is going to increase the GDP? Even if you spend it? Look I understand It "feels good" to buy gas at record lows.
But It does not change the GDP or increase the economy. BNSF is going to furlough 8K workers in Jan. because of lackluster rail transport.
10s of thousands of Canadian oil workers have lost jobs. I cannot even put a number one how many lost in the Permian basin in the USA.
Seems to me last time oil dropped We(as a whole) went out and traded those fuel efficient cars in for big ole gas guzzling beasts, NOT this time
as of late. Seems we might be on to the tricks of the trade. LOL
Do you think that $60 saved is going to increase the GDP? Even if you spend it? Look I understand It "feels good" to buy gas at record lows.
But It does not change the GDP or increase the economy. BNSF is going to furlough 8K workers in Jan. because of lackluster rail transport.
10s of thousands of Canadian oil workers have lost jobs. I cannot even put a number one how many lost in the Permian basin in the USA.
Seems to me last time oil dropped We(as a whole) went out and traded those fuel efficient cars in for big ole gas guzzling beasts, NOT this time
as of late. Seems we might be on to the tricks of the trade. LOL
