Goldman Sachs says price of oil will fall to 70 bucks a bbl in 2015.......

www.cbc.ca...

How do these guys predict this stuff without being in charge of the market somehow........the game is rigged from the top down.
However ot happens we may begin to see some recovery if true......
Right now we are barely covering the fuel costs of living normally, and nobody much is taking sunday drives these days....
Maybe they know when the alternative energy systems are due out as well, and they are dumping the fuel while its still worth 70

a reply to: stirling

Hopefully it will drive up production of natural gas.

a reply to: stirling

I don't know what formula they use for arriving at this cost. But, I was delighted to pay only $2.89 a gallon this past Saturday to fill my car.

For those who say lowering the cost of fuel for automobiles doesn't impact the economy, are full of *you know what*.

I used the extra money I saved on gas, in my weekly shopping budget, as I know a lot of other people do.

I hope to high hell, the politicians who end up in office after the fallout from the November elections start to wake up to the fact we need to produce our own fuel, to stimulate our own economy. Lower fuel costs across the board create jobs and and a more fluid economy.

Stop making us pay for oil shipped from oil bloated countries half way around the world.

Des

Wow this kinda stinks for my family and for Canada also any time oil drops below 90 dollars a barrel it kills my familys bonus for the year but its been in the cards for a while now. We will produce alot more oil than the middle east in coming years as there fields are drying up as planned for years. Use there oil first then when its all gone we will leave them to destroy them self's and kill each other for water. The wars in the middle east wont be happening any more in the next 20 years as there oil drys up and we discard them like yesterdays garbage.

Or does it mean there will be a drastic cut in demand for some as of yet undisclosed reason...?

originally posted by: kosmicjack
Or does it mean there will be a drastic cut in demand for some as of yet undisclosed reason...?

I could go to the dark place and postulate they are thinking...dead people don't drive....

Des

a reply to: pez1975


You figured it out to.
The usa has been buying the resources of other countries for years all the while keeping theirs. When the middle east runs out of oil American will be sitting on loads of cash. The steel industry will be reborn then to.
am I wrong?

As to why this is happening I believe there is a behind the scenes cold war going on. Drive down the price of oil and starve Russia into another revolution.

Keep your eye on the pea under the shell .

Stanford University, an $18.7 billion portfolio, got out of all coal mining investments.
The city of Oakland unanimously approved a measure divesting city funds from all investments in any company whose business is extraction, production, refining, burning or distribution of any fossil fuels.
Rockefeller Brothers Fund, heir to the oil tycoon John D. Rockefeller, announced the divestment of fossil fuels in the fund.

www.triplepundit.com... Take into account that SA is selling their oil on the cheep not because they need to but are actually working with Washington to help put pressure on Russia to concede . Lots of movers and shakers and not all country leaders are willing to tow the line .That is also why the destabilization of other countries . a reply to: stirling ETA

Perfectly timed to the run-up of the 21st United Nations Climate Change Conference that will be held in Paris in November/ December 2015, the European Union has committed itself to apparently decisive steps aimed at sharply reducing the continent’s “climate footprint” in the coming 15 years. By 2030, the EU intends to reduce its CO2 emissions by at least 40 %, to increase the share of “renewable” energy production to 27 % while boosting energy efficiency by 27 %.

wattsupwiththat.com...

a reply to: stirling

Just another opportunity for them to achieve record profits by jacking up the price when the actual price of oil goes down...

Nothing new here...

The scenarios are multifold.....
The 70 dollar bbl will kill off the Tar sands....I think they need 90-100bbl to make money....perhaps less...but not much ive heard said...
This means there will be some migration of workers in Canada again...but going where next....that's the question.....
It will stop the immense profit river the Russian mafia seems to have enjoyed for some time.....
Maybe degrade Iran, Syrian, income for anti western resistance......
Slow down Irans lunge for nuclear weapons.......Or speed it up.......
Therll be a lot of blowback for some people besides the mini boom (if you can call it that)which will come from the extra dollars we save on fuels.....
Nigeria Sudan, and other budding oil rich nations like Venezuela etc.....will be set back signifigantly.......
In fact it looks like cheaper oil will benefit the western oligarchies the most in the SHORT TERM....but have they got the LONG GAME figured out really.......IDK
Any ideas......

a reply to: stirling

I feel I must play devils advocate here a little.

To those suggesting that the ONLY way Goldman Sachs could possibly predict such a thing is by controlling the market for oil, I would say that if this prediction was being made during a time of peace and prosperity in the Middle East, and a time where Africa was not beset by ruinous contagious diseases, then I would agree with you.

However, that is not the case. At the moment the regions which have traditionally produced an awful lot of oil, that is the Middle East and North Africa particularly, are beset by terrorism, and/or Ebola. These two things are basically strangling the market for all manner of things, including oil, by putting pipelines and infrastructure at risk long term, as well as the lives of the workers who make the stuff work.

It stands to reason that there will be a knock on effect from all this, somewhere down the line. I am sure that there is a formula which lays it all out very sensibly, and takes into account all the relevant factors.

That said, they have been playing fast and loose with everything else in the world of finance, so maybe it is them twisting the screw again!

The steel industry was transferred to china i dont see it returning for a while, They can produce it for alot less there but its an inferior product there rods and couplers for the oil industry break and twist at a lot higher rate so more wells and refurbs are using more american steel its cheaper in the long run to use american steel in all the refurbs and new wells, as far as steel for cars and construction that is still gonna be from china unless china pisses off the US and we put tariffs on there steel exports that would kill it for them and bring steel back to america fast. the chineese are smart and know this.

For what you are saying to be true things would have to work the opposite way they have in the past .Because of wars and diseases oil become scarce and there for more expensive but SA is shipping out more but have dropped the price .Even ISIS seems to be getting oil out on the market to help support themselves . a reply to: TrueBrit

im not buying it. In talking to oil execs in the area (and in Houston), the current boom in the US oil market is a decade long at least.

But we shall see......

Its all about the pricing.....The booms are supported by the cost of recovery....they will not be drilling for 80$ bbl oil when it sells for 60$ sort of thing.....
Our resources in the tar sands depend on 100 bbl.....or so....
Others do the same too.....
SA dumping oil has global impacts that will sound ripples in the world financials and trade like the sound of a thousand car freight train slamming on the brakes....the repercussions will reverberate in may regions.....(forgive my poetic bent)
The question is begged WHY.....why do they drop the oil price now when the profits are surging in......
Obviously this is not really so much market driven as strategy for global manipulations.......

Funny, some guy in a suit was saying how bad it is that the price is low. Bad for the economy, bad for Alberta..
I'm thinking, who gives a crap? We've been paying up the kazoo for gas for years now.

What's the point of a prospering economy when you can barely afford the gas it takes to get to work and back?

Low gas? Bring it on. Screw the suits.

Funny how the prices dropped just before the elections. Do you think it will continue to drop after the elections?

originally posted by: butcherguy
Funny how the prices dropped just before the elections. Do you think it will continue to drop after the elections?

You said a mouthful there Butcher.........
The artificiality of the market pricing system is revealed to all who can see with this obvious global ploy for dominance
by somebody.....
The drop will re arrange many countries financial picture in not good ways....
Abiotic theory of oil production, may also be playing out here....The Ocean Ranger disaster on the Gulf Coast may have tapped a vein of oil coming from way down inside the mantle.....and somebody knows that oil will be cheaper in future when we tap into such veins.....and the pockets we now tap are expended....now where did that thought come from....

originally posted by: Hoosierdaddy71
a reply to: pez1975


You figured it out to.
The usa has been buying the resources of other countries for years all the while keeping theirs. When the middle east runs out of oil American will be sitting on loads of cash. The steel industry will be reborn then to.
am I wrong?

The price of oil has nothing to do with supply and demand. This is just market manipulation and speculation....wait till Xmas.

The old economic paradigms are obsolete. Want to prosper in the new marketplace? Think Cullen Roche