Oil $66 per barrel!!

originally posted by: snarky412
a reply to: Xtrozero

One thing we've noticed and is coincidental in it's timing, is that since ISIS has taken over many of the oil wells and is selling it dirt cheap, that in turn is causing Saudi Arabia to drop their prices
Hence, countries are getting oil cheaper than they have in a long while

So indirectly, this may possibly be a silver lining to the ISIS takeover of the oil wells

That's just my personal thoughts however


Did notice that this is the first time in a long, long time that the fuel prices did NOT go up on Thanksgiving weekend
Normally they are like hotels....prices go up on holidays

That is an interesting point, but I do not know if isis can produce enough to effect world market, but could be a player in all this.

originally posted by: Trueman
a reply to: Xtrozero

Who is Valenzuela?

You mean "Venezuela" ?

Damn spell checker...was writing quick hehe

originally posted by: romilo
Is the earth made out of oil or something, coz it looks like we burn it like there is oceans of it, if i remember even closely right i have read that it takes +100 000 of years to oil produced inside the earth, so thinking that way , we havent been using it for even fraction of that time it takes to be made so it kinda sounds logical its gonna run out really fast, yet we burn it like theres no tomorrow towards all sort of useless things, one of them is war machines and this creates more power hungry oil sucking big pockets to the game and i am thinking they know how to keep that cycle up, wars after oil fields, more military oil cost, more free hands and so on.

There are new thoughts on this...

It is suggested now that oil takes a lot less time and that it is basically being created all the time under extreme pressures. It is also suggested that we have barely tapped world supply. Even natural gas and coal both have 1000s years at current use, so oil might not be too far behind.

On a side note: Give it another 20 years and we should see a drastic reduction in oil use as other means of energy take over. We saw it with the horse that got out of control and we will see it with gas soon. Once you have a car that can get 500 miles on a battery, and take an hour or less to recharge, gas will die off quickly.

originally posted by: SLAYER69
Yeah I was reading about this this morning. Interesting debate between OPEC members. Especially the poorer members who argued for cutting production to raise prices but the Bigger Dog Saudi Arabia pushed it aside to keep production high to drive frackers hard.

Theoretically the only winners in this should be us, Joe/Jane sixpack

We'll see.

To be honest, I know it can cause lost of jobs, but in the end think about the lower cost in just about everything this will have. Manufacturing, shipping etc all will reap benefits on this, and not just the price at the pump. I also do not care if oil companies stock tank or if Canada's dollar gets back to where it should be.

Its funny how just back in 2008 gas was 2 bucks a gallon and it wasn't looked at s a bad thing, or an industry killer.

a reply to: Xtrozero
Although the short term consumer advantage will be appreciated, I am far more concerned with what he long term changes will entail.

originally posted by: Rezlooper
a reply to: Lil Drummerboy

Yes, prices are still way too high and Oil and Gas is still making a killing. With barrel prices that low, we shouldn't be paying much over a buck a gallon. Saudi's finally got tired of all the fracking. This is a good thing all around...maybe not for them, but as they see less and less buyers, they had to do something, right? So, they pump millions of barrels of oil and flood the market to hurt the competition...supply and demand. Too much supply with less demand is a good thing for us consumers. Maybe we all get a Christmas gift from the Saudi's...$1.00 per gallon at the pump. Now wouldn't that be nice?

Since the supply is increasing and the prices are dropping, this is going to hurt US shale production. You don't want to do that. This leads to the big decrease in US production, the formation of new wells, and the decrease in new tech. This not only hurts the reliance of domestic oil but gives 'Saudi' the upper-hand when they decide to increase the price to record levels in the future. This leads to having the US at an all time low in production, and you're forced to pay 4-5-6 dollars a gallon.

originally posted by: peck420
a reply to: Xtrozero
Although the short term consumer advantage will be appreciated, I am far more concerned with what he long term changes will entail.

Long term reduction in consumer prices would be nice. Reduction in Ethanol that would reduce animal feed prices and transportation cost will see meat prices go down, as example. At our level I can't see a bad thing here.

originally posted by: Laxpla

originally posted by: Rezlooper
a reply to: Lil Drummerboy

Yes, prices are still way too high and Oil and Gas is still making a killing. With barrel prices that low, we shouldn't be paying much over a buck a gallon. Saudi's finally got tired of all the fracking. This is a good thing all around...maybe not for them, but as they see less and less buyers, they had to do something, right? So, they pump millions of barrels of oil and flood the market to hurt the competition...supply and demand. Too much supply with less demand is a good thing for us consumers. Maybe we all get a Christmas gift from the Saudi's...$1.00 per gallon at the pump. Now wouldn't that be nice?

Since the supply is increasing and the prices are dropping, this is going to hurt US shale production. You don't want to do that. This leads to the big decrease in US production, the formation of new wells, and the decrease in new tech. This not only hurts the reliance of domestic oil but gives 'Saudi' the upper-hand when they decide to increase the price to record levels in the future. This leads to having the US at an all time low in production, and you're forced to pay 4-5-6 dollars a gallon.

I see no problem with prices falling. If the Saudi's don't maintain a low price (relative to what we before this recent spike) we can get back into the market. If all we have to do in order to reduce the price of oil is to have the threat of pumping our own how is that not a win? We get less expensive oil while not having to use our own resources. It also means we don't have to deal with the side effects of fracking.

As far as the employment issue goes, isn't it said all the time here that part of personal responsibility is dealing with market changes? They can work other jobs.

One of the biggest winners is probably the refining companies. As they still control the market for oil being converted to fuel, and obviously can limit supplies of gasoline/diesel/jet/kerosene in the market. They'll take advantage of this. And if they have any holdings in companies that get oil from shale or fracking, they'll take advantage to idle down and re-invest in infrastructure while still milking whatever crude the Saudis give them. When prices go back up or other reserves are depleted, they'll be plenty ready to make the best of it.

But since I have to use the stuff for my car, I still don't mind if it would drop at the pump by a $1.50 or more.

originally posted by: intrptr
a reply to: FlySolo

It comes from the center of the earth and will never run dry.

Okay, but if prices for what there is currently available at the surface are manipulated , it can and will rock the delicately balanced financial boat. We're already bailing…

and drowning in debt.

This is a perfect setup for stimulating the world economies. Lower fuel prices lead to lower consumer prices for goods temporarily. Gives the world governments an excuse to lower interest rates to silly levels. Savvy/not so savvy/damn stupid investors and prospective home buyers will eventually see the value in "new investment" at the low interest rate.

Looks like an intermediate length strategy good for 2 or 3 years. Does th Fed wait for the obismal GDP numbers before acting?

a reply to: romilo

Still i wonder if the earth has any affect of the fact we sucking it by such large quantities and burn it to the air.

Absolutely. The direct fallout is all the plastic garbage (all plastic is made from oil), the exhaust of jetliners (contrails block the sunlight and rain pollutants on our heads) smog from auto train and truck exhaust mire the city skyline, coal burning power plants and industrial factories like steel mills and manufacturing plants add to it, even the roads are covered with tar, the last product from refining. Never mind oil spill "accidents" and refinery explosions. Who else is that stupid to take the most toxic stuff buried in the planet and burn it to the open air (smog), clog our oceans and rivers with it and spread it all around on the ground?

We are choking on the effluent runoff from our "civilized" way of life.

a reply to: Slichter

Savvy/not so savvy/damn stupid investors and prospective home buyers will eventually see the value in "new investment" at the low interest rate.

That "bubble" will eventually pop, too.

Does the Fed wait for the abysmal GDP numbers before acting?

Shhh,they're trying to cover that up. This time the price fixing is not being done on the part of the "Fed".

Where do you think this price drop will lead if it continues and remains low or even lower? has anyone looked down that road?

a reply to: intrptr

Alberta has already started suggesting raising a sales tax to offset the losses from the oil industry here.
I've also heard that down the road, a year or two, that they're likely to be raising interest rates to curb excessive spending from all that extra money we can spend elsewhere.

Maybe it'll balance itself out, as long as Cdns are careful and preplan our expenses and spending. ...

It sounds like the low prices are here for a while

a reply to: snowspirit

It sounds like the low prices are here for a while

Not for us little people. Gas is just as expensive as it has always been. So are groceries.

Waiting for those low prices to kick in. (They won't)

originally posted by: intrptr
Where do you think this price drop will lead if it continues and remains low or even lower? has anyone looked down that road?

1. The Fracking industry goes idle waiting for prices to go up, loss of jobs.
2. Russia is in deep poo if this goes on for years. Their economy can not sustain plus the sanctions are doing a lot of damage too. I would look for them to have their own oil war in the Middle East....
3. I would not want to be anywhere near Venezuela. They will have hyper inflation, riots, government change etc. Maybe good timing for Columbia and Brazil to take that country over???
4. Canada will see inflation, higher taxes, huge drop in the currency value.
5. America and Europe will be sitting pretty with lower gas and consumer prices.
6. Middle East will not see any real negative effect, unless Russia attacks them.
7. China will most likely stock pile a trillion dollars worth of crude hehe...

a reply to: intrptr

Alberta gas dropped down to 96 cents a litre so far. The high point here was about $1.30 a litre couple of months ago.
I don't think they'll drop much further.

That said, food prices have gone through the roof lately.......
Beef just went way up, no one has explained the huge jump in price.

a reply to: Xtrozero

You mean we have been trying to conquer the whole oil region with all that blood and treasure and all they have to do to win is drop prices?

Maybe we should bomb Saudi Arabia instead?

a reply to: snowspirit

That said, food prices have gone through the roof lately.......
Beef just went way up, no one has explained the huge jump in price.

Same here… US, west coast. Big jump lately in groceries. The rising cost of fuel to deliver is what they been saying. Whoops along come the Saudis and drop prices to muck that excuse up.

Theres your sign. If gas costs less, then it costs less to deliver food. But food prices are going through the roof. So are real estate prices. I heard somewhere that all this is a sign that they are printing money to keep up with enormous debt. They call it "Q uantatative Easing".

Making up money electronically or by printing it increases the money supply, making the dollar or pound worth less. So they charge more at the store for the same goods to make up for the "loss".

Image

originally posted by: intrptr
a reply to: Xtrozero

You mean we have been trying to conquer the whole oil region with all that blood and treasure and all they have to do to win is drop prices?

Maybe we should bomb Saudi Arabia instead?

I think we should just let the Middle East do what they want and we tell them that as long as oil is $60 a barrel we will leave them alone...hehe

a reply to: Xtrozero

Think they'll believe Obama, Kerry or Hillary this time?