How low can it go? (pic included)

[guvenor]

Don't wish to panic anyone but didn't oil prices fall dramatically just before the 2008 collapse ?

 

[Capo Dei Capi]

Don't wish to panic anyone but didn't oil prices fall dramatically just before the 2008 collapse ?

There wasn't much production in 2008, the prices fell because of the collapse. This time there is increased production in America,Mexico,Canada and many other countries. There is also a International Price war going on to see who will stop at $40 and $30 a barrel. The Saudi's don't want the USA to become an exporter of oil,which it now can because of the sands and it will be the largest producer in the world. But there is a ban going on since 1975 banning the export of oil.

 

[guvenor]

There wasn't much production in 2008, the prices fell because of the collapse. This time there is increased production in America,Mexico,Canada and many other countries. There is also a International Price war going on to see who will stop at $40 and $30 a barrel. The Saudi's don't want the USA to become an exporter of oil,which it now can because of the sands and it will be the largest producer in the world. But there is a ban going on since 1975 banning the export of oil.

Maybe I'm being paranoid because the FTSE 100 had a massive fall too last week ?

 

[Trepanated]

There wasn't much production in 2008, the prices fell because of the collapse. This time there is increased production in America,Mexico,Canada and many other countries. There is also a International Price war going on to see who will stop at $40 and $30 a barrel. The Saudi's don't want the USA to become an exporter of oil,which it now can because of the sands and it will be the largest producer in the world. But there is a ban going on since 1975 banning the export of oil.

I don't think it's just about the US, or any single country.

The Saudis haven't actually done anything to affect oil prices - output figures were set a long time ago. The price crash is because of new, non-OPEC sources hitting the market.

The Saudis are panicking because their (and OPEC's) dominance is being threatened.

The problem they have is that not a single OPEC country can balance their budgets at current prices, so the Saudis are going to be under pressure from other members of the cartel to drop production (none of them have the financial resources to weather a long term price war).

I don't think they can do anything in the long-term to maintain their share of the market.

I think it's a case of who is going to blink first - and I predict it will be OPEC who does.

Don't forget, the US economy will benefit from lower prices, whereas the OPEC economies won't - the US doesn't need to blink.

 

[islandman1010]

Don't forget if you want to cripple the economy of Russia as the west does you let the prices keep falling. This is no accident.

 

[Capo Dei Capi]

Don't forget, the US economy will benefit from lower prices, whereas the OPEC economies won't - the US doesn't need to blink.

But in the US oil is not controlled by government owned companies, so if the Price goes too low companies will lower production.

 

[rob1977]

 

[lancis]

Don't forget if you want to cripple the economy of Russia as the west does you let the prices keep falling. This is no accident.

I doubt Russia is a major factor. Its a combination of low prices from ISIS and increased production.

 

[Trepanated]

But in the US oil is not controlled by government owned companies, so if the Price goes too low companies will lower production.

That's why I said the US doesn't need to blink.

The Saudis and OPEC will blink first, because their budgets are already suffering and they are the ones who cannot sustain low prices.

The only real solution is for OPEC to cut production and eventually have a reduced market share.

All that's really happening is the marketplace is rebalancing as a result of increased overall output - OPEC doesn't like it but they can't stop it for long.

 

[touted]

Any time you can fill up for under $50 it's a good day. Hope it continues.

 

[Scross]

Any time you can fill up for under $50 it's a good day. Hope it continues.

Yea, that is my opinion too.

 

[Zwielicht]

Any time you can fill up for under $50 it's a good day. Hope it continues.

 

[touted]

Yea, that is my opinion too.

I remember gas being under a buck and when it finally crossed the $1+ threshold I told myself I would cut back on driving. Ohhh how the times have changed.

 

[touted]

b-e-a-utiful.....

 

[sajeneika]

1.1EUR/1litre - in Lithuania. I'm so jealous for 0.555eur/1 liter

 

[rob1977]

I remember gas being under a buck and when it finally crossed the $1+ threshold I told myself I would cut back on driving. Ohhh how the times have changed.

Lol do you know how many times I've said that lol. As it was slowly rising towards 50 pence a litre, "people will rebel against it if it gets to 50 p they will just stop buying it" lol

 

[jstover77]

As a matter of fact I just ate me a Wawa shorty.

From what I have read, the US has been increasing production and the Saudis not to be outdone, have done the same. We swimming in oil.

 

[Capo Dei Capi]

1.1EUR/1litre - in Lithuania. I'm so jealous for 0.555eur/1 liter

It could get down to near that one day if the U.S. ends the export ban. The U.S. Congress is supposedly in talks of ending the export ban. And if the oil pipeline project From Canada to Texas gets the stamp of approval from the President.

 

[SocialMediaManager]

0.82$ in my Country after reduction

 

[Capo Dei Capi]

The sad thing is I bet alot of people are going to forget about the high prices soon and decide on getting bigger vehicles since gas is now "affordable". And then when it does go back to $3/4 a gallon they are going to be f*cked.