• US oil falls below $50 a barrel.
    80 replies, posted
[QUOTE][QUOTE][IMG]http://news.bbcimg.co.uk/media/images/80073000/jpg/_80073012_tv025128139.jpg[/IMG][/QUOTE]The US oil price fell below the symbolic threshold of $50 a barrel for the first time since April 2009, [B]before finishing the day at $50.05. [/B]The price of Brent crude also fell on Monday, dipping 6% to $53 a barrel. The price of both Brent crude and US oil, known as West Texas Intermediate crude, have now lost more than half of their value since mid-2014. Investors are worried that combination of a global supply glut and weak demand could cause prices to tumble further. US oil production has soared recently, as fracking - or the process of extracting oil from shale rock by injecting fluids into the ground - has revolutionised oil production in the country, transforming US states such as North Dakota and Pennsylvania in the process. However, the increase in production has come just as economies across the world - from Europe to China - have slowed their once voracious demand for oil. That has in turn led shares of many of the world's leading energy firms, from BP to Exxon Mobil, to decline sharply over the past few months. Source: [URL]http://www.bbc.com/news/business-30687669[/URL][/QUOTE]
It's $2.09 here in Jacksonville, Florida. Woo!
Prepare yourself for an entire thread of people posting fuel prices. The DOWJ dropped 300 points when the crude dropped. I think they're getting spooked about how low it can go
Hip Hip....Hooray?? I legitimately ask this as a question. The reason being is that although this is a great thing in the short term what consequences will there be in the future? Don't get me wrong, I have been making enjoying the cheap fillups at the pump, but I sense that this will possibly lead to problems later.
How much is a barrel(in capacity, not price)?
[QUOTE=Code3Response;46865045]Prepare yourself for an entire thread of people posting fuel prices. [/QUOTE] [img]http://www.speedtest.net/result/4036615535.png[/img] Am I doing it right?
Local prices down to ~$2.05 here. It feels pretty great to put in 30 bucks and still have left over money after filling my car.
[QUOTE=Code3Response;46865045]Prepare yourself for an entire thread of people posting fuel prices. The DOWJ dropped 300 points when the crude dropped. I think they're getting spooked about how low it can go[/QUOTE] They really shouldn't be spooked. If the investors kept their heads on and realized how great this is for the USA and the world, we would be better off. Oil prices will stabilize and life will go on, but noooo investors have no sense whatsoever and may bring about a collapse worse than the great recession or even depression if oil continues to decline or does not begin to rise. Unless russia and iran start a war or "conflict" over the low oil prices, they are very unpredictable when their economies are in trouble.
[QUOTE=Bredirish123;46865052]Hip Hip....Hooray?? I legitimately ask this as a question. The reason being is that although this is a great thing in the short term what consequences will there be in the future? Don't get me wrong, I have been making enjoying the cheap fillups at the pump, but I sense that this will possibly lead to problems later.[/QUOTE] Oil industries are gonna take a hit. Countries that rely on oil revenue will really be feeling the effect in the coming months.
[B]$1.59[/B]
$1.89 here in Southeast Texas. Which is weird, considering I literally live right next to a refinery and there's more scattered around near the coast.
~$2.60 in NY i can dig it
$2.39 in Washington (State) Also RIP oil industry. [sp]maybe[/sp]
[QUOTE=Code3Response;46865045]Prepare yourself for an entire thread of people posting fuel prices. The DOWJ dropped 300 points when the crude dropped. I think they're getting spooked about how low it can go[/QUOTE] It's just Oil Limbo! Except instead of hitting the bar, a bunch of people are unemployed and a couple countries economies collapse.
it's happening.
[QUOTE=Bredirish123;46865052]Hip Hip....Hooray?? I legitimately ask this as a question. The reason being is that although this is a great thing in the short term what consequences will there be in the future? Don't get me wrong, I have been making enjoying the cheap fillups at the pump, but I sense that this will possibly lead to problems later.[/QUOTE] Oil revenue will take a hit, no doubt. But the argument is that the lower price of fuel across the board will (ha ha) oil the gears of the economy and get lots of things moving (since nearly everything has fuel as an expense, which slows down economic activity.) Whether or not the added activity offsets the revenue loss in terms of total economic value is the big ticket question. Hopefully yes?
Fuckin crazy. And yet it just jumped from $1.99 to $2.15 here, because it's a college town and we get gouged to the tune of $.20-.30/gal whenever school is in session. Not that I'm bitching about $2.15 gas.
[QUOTE=Used Car Salesman;46865160]Fuckin crazy. And yet it just jumped from $1.99 to $2.15 here, because it's a college town and we get gouged to the tune of $.20-.30/gal whenever school is in session. Not that I'm bitching about $2.15 gas.[/QUOTE] supply and demand?
[QUOTE=Smallheart;46865138]$2.39 in Washington (State) [B]Also RIP oil industry[/B]. [sp]maybe[/sp][/QUOTE] They were the ones who saw the falling oil prices, and made a collective decision to continue to let them fall. Speculation: I've read that, for many reasons, this is an attempt by oil to make alternative energy less attractive. For most businesses, its working; why throw up more solar panels when electricity from oil-powered electric stations is at an all time low? Why buy a Prius when you're not going to be saving money with prices this low? Yes, the prices will rise again, but this has already been effective in stunting the growth of the alternative energy industry.
[QUOTE=>VLN<;46865076]They really shouldn't be spooked. If the investors kept their heads on and realized how great this is for the USA and the world, we would be better off. Oil prices will stabilize and life will go on, but noooo investors have no sense whatsoever and may bring about a collapse worse than the great recession or even depression if oil continues to decline or does not begin to rise. Unless russia and iran start a war or "conflict" over the low oil prices, they are very unpredictable when their economies are in trouble.[/QUOTE] This certainly isn't good for the US. There's a reason why OPEC decided to not cut supply, and that is because they are deliberately trying to drive oil prices down to a level where the US simply cannot compete. If the OPEC can maintain that, it could threaten domestic industry and net exports in the US. Not to forget the impact on government revenue, which pays for things such as social services. Oh wait I can still go on because, at least in the short term, this would possibly reduce demand for clean energy sources.
[QUOTE=Crazy Ivan;46865154]Oil revenue will take a hit, no doubt. But the argument is that the lower price of fuel across the board will (ha ha) oil the gears of the economy and get lots of things moving (since nearly everything has fuel as an expense, which slows down economic activity.) Whether or not the added activity offsets the revenue loss in terms of total economic value is the big ticket question. Hopefully yes?[/QUOTE] I suppose it's great that nations such as the US with this much landmass will definitely see the cost of living plummets; since, as you said the lower fuel costs essentially brings cheaper goods to market. I can definitely see this sparking consumer confidence. Hell, if cheap transportation costs is what makes our economy flourish then maybe this will jump start an auto revolution. It lead to more affordable Tesla-esque vehicles coming onto the market.
With oil prices so low, why are airplane tickets still the same?, shouldn't they decrease in price since fuel is cheaper?
[QUOTE=gamefighterx;46865341]With oil prices so low, why are airplane tickets still the same?, shouldn't they decrease in price since fuel is cheaper?[/QUOTE] Shouldn't everything decrease in price since things have to be delivered by airplanes and trucks that use fuel?
[QUOTE=Antdawg;46865182]This certainly isn't good for the US. There's a reason why OPEC decided to not cut supply, and that is because they are deliberately trying to drive oil prices down to a level where the US simply cannot compete. If the OPEC can maintain that, it could threaten domestic industry and net exports in the US. Not to forget the impact on government revenue, which pays for things such as social services. Oh wait I can still go on because, at least in the short term, this would possibly reduce demand for clean energy sources.[/QUOTE] Sorry about the confusion, I forgot to mention OPEC. I was trying to say it would be good for the market if OPEC cut oil production and wasn't trying to undermine the market.
[QUOTE=FurrehFaux;46865112]$1.89 here in Southeast Texas. Which is weird, considering I literally live right next to a refinery and there's more scattered around near the coast.[/QUOTE] Texas City?
yeah and gas prices here just shot up 40 cents since last night :(
[QUOTE=gamefighterx;46865341]With oil prices so low, why are airplane tickets still the same?, shouldn't they decrease in price since fuel is cheaper?[/QUOTE] Because airlines dont run a good profit margin, so they'll take it when they can take it. Additionally, I believe hedging is involved
in other news vodka prices stay the same
[QUOTE=>VLN<;46865076]They really shouldn't be spooked. If the investors kept their heads on and realized how great this is for the USA and the world, we would be better off. Oil prices will stabilize and life will go on, but noooo investors have no sense whatsoever and may bring about a collapse worse than the great recession or even depression if oil continues to decline or does not begin to rise. Unless russia and iran start a war or "conflict" over the low oil prices, they are very unpredictable when their economies are in trouble.[/QUOTE] They explained this on the news Investors react positively to decreasing prices due to an increase in SUPPLY This drop is due to a decrease in DEMAND this means the global economy is at risk of slowing down [editline]5th January 2015[/editline] I'm talking about just this drop specifically, not the recent trend we have seen
[QUOTE=POLOPOZOZO;46865542]They explained this on the news Investors react positively to decreasing prices due to an increase in SUPPLY This drop is due to a decrease in DEMAND this means the global economy is at risk of slowing down[/QUOTE] This is def a combination of both. Nothing has entered the market to create demand shock. US Shale however has increased making a supply shock.
Sorry, you need to Log In to post a reply to this thread.