Oil $66 per barrel!!

So in the last few months we saw oil drop below $90 a barrel. One of the biggest reasons is OPEC is trying to stop/bankrupt the Fracking industry that has created a new oil boom in America. Fracking needs barrel prices above $80 to be profitable, so OPEC is looking at driving that price much lower. The industry started to freak out at $80, so now we see $66 a barrel and I wounder what that means...hehe

Twp other side effects to all this and that may also be a player is Russia needs about $100 plus a barrel for their economy, and Valenzuela needs somewhere between $115 to $200 per barrel. Valenzuela burned though about a 4 billion Chinese loan in a week due to this issue with lower oil prices, so it is going to be interesting with Russia and their sanctions and now no revenue from their oil along with Valenzuela spiraling out of control now.

One last note...it is excepted that the Canadian Dollar will drop to the low US 80 cents per dollar.

World wide financial collapse imminent.

Panic.

a reply to: Xtrozero

S^F and I agree... I still wonder if some of this stuff is a consortium of interests that wants to destroy Russia's ability of modernization and help expedite the demise of their economy ? Ties right into the sanctions IMO.

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

This also impacts Australia . As far as i am concerned OPEC can keep the prices low .20 years time we will still have our gas .

www.9news.com.au...

a reply to: Xtrozero

Who is Valenzuela?

You mean "Venezuela" ?

lol RICCCHIIIIIEEEEEE!!!!!!!!1

yea wrong name there.

thats 66 bones though.

I'm not complaining. It will drive the prices of other products down as well as transport costs go down.

If anything this will put a sort of buffer on the excess inflation the Fed has been creating. But it can only last for so long.

Too bad the pump prices are keeping up
with the barrel reductions.
Its still $2.79 in wisconsin

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?

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.
When will the oil run out, what will happen to our world that day and after? Does anyone else feel like we could have used the oil bit more smartly in a first place? All this short-sightedness from our so called leaders seems just suicidal, it could be that they have alternative plans actually, maybe they really have engines run by water or similar much cost less methods and so on but then again it would look bad for rest of us, they obviously do not want human civilization running with free and wild.

a reply to: Rezlooper

Lol, a buck a gallon ?
we would see a bunch of oil rig disasters before that happens..

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.

I seem to recall Obama saying the reason gas prices were so low when he first took office was because the economy was on the verge of collapse. So now I'm left wondering... was he full of crap then, is he full of crap now, or is he just always full of crap?

This oil thingy is not good for Europe or the US. There are a lot of jobs Connected to the oil sector. Many of these workers will be let of soon if this keeps up.

originally posted by: Bone75
was he full of crap then

Yes

is he full of crap now

Yes

is he just always full of crap?

Yes

That should clear up a few things.

a reply to: romilo

When will the oil run out, what will happen to our world that day and after? Does anyone else feel like we could have used the oil bit more smartly in a first place?

It won't. The biggest lie in 120 years. And you remember they taught you when you were a little kid that oil comes from dinosaurs.I know, as a little kid you don't question these things, just file them away as a fact. But think about it. Dinosaurs?? Millions and millions and millions of barrels every day for a 100 years below depths of any fossils, in rock.

But that's how you keep a commodity growing in value. To ensure there is a limitation, an indefinite amount which will eventually run dry. There's no way oil comes from dead plants, dinosaurs and sea crustaceans. It comes from abiotic synthesis of hydrocarbons. It comes from the center of the earth and will never run dry.
www.google.ca...=abiotic%20synthesis

a reply to: FlySolo

Nailed it!
The life blood of the Earth..

a reply to: Xtrozero

It means, fill your gas cans people.
And add some "Stable" to it for gas doesn't
keep long and will gum up your mechanical
innards after a while.

By next July it will be over $4.00 a gallon again.
Damn it.

a reply to: romilo

…so thinking that way , we haven't 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,

One sign of that is the switch to shale oil production. Considered a lower grade source. Same with Fracking. People will say that both are new and improved processes, but the shale and frack sources have always been there, just not utilized until recently because of the costs associated with producing them.

The same thing happened in Germany at the end of WWII. They switched to shale oil production when the sources for higher quality crude were captured or bombed by the Allies. The switch to shale oil and synthetic oil production was a desperation measure on the Third Reich's part.



While we are trying to conquer the world with bombs, they are simply dropping prices. Conceivably there is no bottom limit to the price drops. Who can hold out longer? The oil consumer or oil supplier?

Fueling Germany