Skip to comments.CRUDE OIL BREAKS $80: GOING DOWN!
Posted on 10/27/2014 7:49:15 AM PDT by SeekAndFind
Crude oil just broke $80.
In morning trade on Monday, the price of crude oil fell below $80 a barrel for the first time since mid-2012 as energy prices continue to plummet around the world.
The most recent drop in oil, which has been a bear market since topping out at about $107 during the summer, follows a cut in oil-price expectations from Goldman Sachs' Jeff Currie over the weekend.
Currie took his oil-price forecasts for WTI Crude to $75 a barrel in the first quarter of 2015 and to $70 a barrel in the second quarter of next year.
Longer-term, Currie expects WTI prices to stabilize near $80 a barrel, and Currie said that "uncertainty around the required price to slow down US shale production growth is a key risk to our forecast."
Currie's forecast relies on three key reasons:
* We have greater confidence in the scale and sustainability of US shale oil production. This implies that the global cost curve has shifted lower and that cost deflation is sustainable.
* We forecast that accelerating non-OPEC production growth outside North America will outpace demand growth, leaving the global oil market oversupplied.
* We believe that OPEC will no longer act as the first-mover swing producer and that US shale oil output will be called upon to fill this role.
(Excerpt) Read more at businessinsider.com ...
Drill Baby Drill....
“CRUDE OIL BREAKS $80: GOING DOWN!”
It’s a Big Oil conspiracy! They’re colluding to lower prices!
Drill here, drill NOW!
I thank God he blessed us with shale oil and the means of getting it out of the ground at just the right time. Can you imagine how much worse 0bama’s damage would have been without it?
They REALLY hate big oil now...
Diesel is down to $3.22/gal around here. It needs to go down about another $1.
When did premium get to $.50 over regular gas ?
It dropped below $80 on 10/15.
It cost money to drill.
Small operators don’t have the money to fund the drilling of wells they need the money of investors.
When the price gets too low investors aren’t going to be putting their money in drilling since they may never get their money back.
The price is being manipulated to stop drilling here in the US.
Enjoy it while you can. Prices will be going back up after the “election”.
While I can understand buying oil to $80 a barrel, I have to ask, who is actually selling it for that price? If I owned a well, I’d shut it off.
Yep, I have some 55 gal barrels all ready to load up with diesel should it get down around what you’re saying.
“* We have greater confidence in the scale and sustainability of US shale oil production. “
But at what price does shale become unprofitable?
It has kept us from a full-on collapse. So far.
Sometime in late 90’s methinks. I really cannot say.
Despite the best efforts of the greenie whacko’s, Democrats, Obama and the neo-Marxists, the oil industry is dragging America, kicking and screaming, to energy independence. Remember when Jimmie Carter said we needed to break free of Middle East oil interests? Why isn’t he cheer leading this huge accomplishment?
May not be too far from the truth. Details perhaps dynamic, but could truly be a geo-political explanation.
My opinion...effort to collapse the Russian economy.
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