How low will OIL Go ?

It's going down till Feb. 4 unless China gets in the way

It happens every year almost because of the end of the heating oil season and early enough to start up the highway gasoline to have a buffer before the driving season.

a reply to: eriktheawful

It's also not shady as the rise in basic food costs, rising to punishing levels when the fuel rocketed to near $4 gal here...

Now that it has plummeted to sub $2, less than when that spike occurred, do the folks see relief in the grocery stores for goods like beef, milk etc?

I haven't seen it...

I still remember buying gas at $2 gallon, and a LB of ground beef at $1 or less depending on the fat content...

Still near to $4 Lb here.......

Supply & demand my arse.... it's all about squeezing profit out of the working folks...

I thought the whole point of OPEC was to prevent a glut, it's simple, you produce less but the cost goes up, so you make the same return.

This way they are all losing just Saudi a little less.

a reply to: Forensick

no doubt... in the US we were already conditioned to seeing the holiday price spikes for fuel during the "most traveled" seasons arrived...

spring break, 4th of July, Labor day weekend were guaranteed to see fuel cost rise....

2015.... broke the streak... why?

Who is putting pressure on who... some are willing to take less profits now, in order to hurt some others....

Must be nice to have that ability to play folks like that...

originally posted by: Forensick
I thought the whole point of OPEC was to prevent a glut, it's simple, you produce less but the cost goes up, so you make the same return.

This way they are all losing just Saudi a little less.

The others arent happy with it and some are "considering" leaving, but lets be clear OPEC is Saudi, SA is OPEC

a reply to: JacKatMtn

Yea man, food is outrageous.. It blows my mind how little I get for how much I spend at the grocery store.


I clearly work in the oil industry if that wasnt obvious from my posts.

Relatively speaking, gas prices, whether it be $2 or $4.... its still a bargain. Its just the least satisfying purchase we make, so its easy to bitch about.

and Im sorry but if a person cant buy groceries, christmas presents, take vacations, or pay student loans because of gas prices, I think they need to redirect their frustrations and/or reevaluate their expenses. Cancel the cable, dont buy that new iphone, get a more fuel efficient vehicle, get an older vehicle, because gas prices arent your problem.

unless you own a trucking or transportation related business

Oil was $30 before USA went into Iraq 2003. $30 is the natural price. Economy is so screwed that countries risk nuclear war to get their share of cash.
2016 I think will be year of nuclear war.
Stock market all around world is crashing today.
Fear rules, darkness rules.
Find peace in yourself, enjoy your family.
Every day is numbered for humans.
The can cannot be kicked too much further.
Something major will change this year.

Oil was $30 before USA went into Iraq 2003. $30 is the natural price.

a reply to: REalBEL

Thats not true. It was much cheaper to extract oil in 2003. Today there are more regulations, its much safer on the environment and for the workers... while drilling in extreme conditions or at crazy depths.



This was how you drilled for oil in 2003


Or like this in shallow water

This is how you do it now. In 10,000' of water

a reply to: REalBEL


it cost $20-30 to get it out of the ground on the most basic wells, e.g., the ME, Russia. Economies are surviving, just getting by, at $50 bbl

I run 21 trucks in my business every day. I am loving the lower fuel cost as long as it last.

a reply to: JacKatMtn

Actually that was explained to me and the answer did make sense (though I didn't like like it).

Lots of goods are transported by businesses that contract out with extended period contracts, who's prices are based upon the fuel costs at the time.

Which is why just because fuel price go down, the food prices do not go back down. Or other goods for that mater.

On a side note... Canadian crude from the Tar Sands is trading at $20 a barrel and Alberta is in dire straits. Makes me wonder if the $15B law suit brought against the US government for cancelling the Keystone pipeline isn't just an attempt to keep the company afloat.

Steaming the oil out of that muck costs big bucks and $20 doesn't go anywhere near the production.

World oil price is down to $32 now, blaming the Chinese stock market rout this morning.

Ouch.

originally posted by: JacKatMtn
a reply to: Agit8dChop

While it does have the side effect of lowering IS' money flow from their oil sales, I think Russia is the intended target.

Has nothing to do with ISIS, the latest news is that ISIS has acquired the ability to "fire" the western anti-aircraft missiles they acquired and haven't been able to use. That's "western" backed information ... and the intended target are the Russians.

The big question is, can these levels be sustained? The US is already "reaching" in it's oil production ... Europe doesn't have any ... worth mentioning. So, the current "prices" is more about selling the stocks, or stock piling oil by the west (in my opinion).

originally posted by: BoldAlligator

Oil was $30 before USA went into Iraq 2003. $30 is the natural price.

a reply to: REalBEL

Thats not true. It was much cheaper to extract oil in 2003. Today there are more regulations, its much safer on the environment and for the workers... while drilling in extreme conditions or at crazy depths.



This was how you drilled for oil in 2003


Or like this in shallow water

This is how you do it now. In 10,000' of water

Correct, plus you have almost 13 years of inflation. Even at only 2 or 3% a year, that in itself is a big jump (30% or so), and the energy inflation rate is typically higher than 2 or 3%.

It's definitely a price war to see who can survive the longest. Saudi just had to raise their gas prices 50% from 16 cents a liter to 24 cents a liter, and they're projected to run a deficit of over $100 billion this year.

Low oil prices is a boon to the consumer as high prices are a hidden tax that increases the costs of just about everything in your life.

The fracking boom is a major contributor and now that the initial cost of exploration is out of the way extraction costs should remain reasonable. The price of oil is predicted to remain low for the next 5 years.

Strange how prices at the pump are the same than last year and that food hasn't dropped either.

I'm f***in sick that we always get the short hand of the stick.

a reply to: theMediator

The price around the corner from me is $1.71, it was higher this time last year.

$1.56 here where I live.

Saw some spots as low as $1.45 during the holidays.

$2.17 where I live and our a$$hole Governor wants to increase the taxes on it because we were used to paying over $3.00.