Posted on 01/12/2016 12:09:40 PM PST by Lorianne
Petrol prices could fall back to levels last seen in 2009 in a $10-a-barrel world as major banks say there is no bottom in sight for the world's lopsided market __ Oil prices have fallen to fresh lows of less than $30 a barrel amid warnings the price rout could reach as low as $10 and bring down petrol prices to levels last seen in 2009.
Standard Chartered became the latest major bank to downgrade its oil outlook, joining the likes of Goldman Sachs, RBS and Morgan Stanley in making ultra-bearish calls as prices have collapsed by 15pc this year.
Brent crude has now slipped to a fresh 12-year low of $30.41 a barrel, while West Texas Intermediate - the US benchmark - is trading at $29.93. Analysts warn the oil market remains fundmentally out of balance as record over-supply and stagnant demand weighs on traders.
(Excerpt) Read more at telegraph.co.uk ...
Can’t be. We are almost out of oil. Scarcity breeds high prices.
If $10, Y Knot $5?
Ping.
Why can’t they give us stuff when we fill up like the old days?
2009? No. 1998~99.
These kind of calls are fear mongering and signal a bottom is near imo
Do you really believe it was free?
Do you want them to inflate the price to pay for trinkets?
This is why we need to negotiate from a position of power!
I’m thinking that we’re close to the bottom. It might spike down, but I think we’ll hover in the upper 20’s for several months.
If some 90% of production shut down, it would certainly take care of any glut.
For some wells here in the US, it is still economically feasible to pump at even $10 a barrel, but even the Saudi oil fields would be struggling at those prices.
Everybody else in the world will be closing up shop. Russia for sure.
And Russia without oil to export is essentially bankrupt, even more than the US now is.
I like the humiliation factor.
Yep... I remember selling for $12 around that time, while I was with Louis Dreyfus.
It’s also why we need to put liberals in cages. No matter where they originate.
Doesn’t matter where it sinks to in terms of the number.
A great opportunity is coming since you can’t produce oil profitably at this price level. The glut will go away over time due to lack of production, while many companies go broke from debt overhang.
The nimble will prosper as they pick up the pieces.
There are hundreds of Free Traitors™ that have told me numerous times it is evil to try to protect any US industry with tariffs, caps or embargoes for any reason at any time.
Shiny things are better than smoke and mirrors....
The Saudis can produce oil cheaply but still need a price of over $100 a barrel to pay for their government spending.
Their high production play is temporary as their cash reserves will be gone in less than 5 years at these prices. I think they underestimate the ability of the USA to quickly shrink and grow its energy industry depending on conditions.
The Saudis have no economy without oil. The USA is much more diversified.
Still will be above $2 in some states like Washington.
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