P!
This is great, prices drop lower and lower. Guess what America still produce oil because eventually the bastards will stop producing and selling and here in America we keep going on. Russia is losing millions because of the oil issue. So the Russians will strive to cause problems because there supplies will be depleted as they cannot be profiting if the price drops and drops. The cost of Ukraine and Crimea are devastating the Russian economy. Lets face it Russia and the Arabs are toast.
Pfffht.
Short memories. Oil bottomed at $35 a few years back and the effect on our oil production was temporary and minimal. My nat gas royalty checks went down and the well was shut in for a couple months.
I was fine with that. I’d rather they produce the gas at a better price, in the meantime it’s money in the bank.
This won’t last too long, there are other countries that will hurt much more than we will. In the meantime Americans can enjoy more disposable income.
The people panicking are the pushers of wind and solar. They just got a lot less competitive.
It’s kind of like those “we will rebuild” jokes after a 2.7 level earthquake.
This is all strategic.
The big guns in OPEC are looking to kill off the smaller producing entities in the US and other places by lowering the prices.
The smaller guys must have oil at $90-$100 to be profitable. OPEC can withstand some temporary pain while they go bankrupt, and they will be the last one standing when the dust clears. When you are a big monopoly, you have flexibility when it comes to how you wield your power.
Conflict free oil is the answer.
The US Dollar index is up at 88.00 and hasn’t been that high since June 2010.
Gold is less than $1200/troy oz. and silver about $16.50/oz.
Oil is too important a commodity to allow boom / bust cycles do harm.
We fight wars over oil.
Let’s stabilize the price of oil so we don’t have to fight these wars in the future.
Someday, our military and transportation will not use as much oil, but until then we have to ensure a price environment friendly to producers.
I can hear the gnashing now. Government subsidies to the wealthy etc. But would you rather go to war?
Well good, perhaps the ME funding of Islamic terror will dry up!
There will be many defaults to sour investors against reinvesting in fracking in the future. Startup costs are also high in shale plays.
Oil continues to fall. It’s now at $68.69 a barrel.
Maybe Americans shouldn’t be taking Saudi Arabia’s actions so personally, since the Saudis have closer and fiercer enemies, particularly Iran, Syria, and Russia, that they’re interested in bringing to their knees.
Iran’s oil-based economy should be hit hard, and their suffering people might rebel against the Ayatollahs.
In addition, Iran won’t have a lot of discretionary income to devote to their nuclear operations.
And Russia, with its failing oil economy, is no longer in a good position to keep sending large amounts of money to Syria’s government to help keep it afloat.
Sunni Saudi Arabia is now poised to sit back and watch its Shiite enemies twist slowly and painfully in the wind.
And here we’ll be enjoying falling gasoline prices. Our oil companies will suffer, but our oil-dependent industries, particularly the airlines, will be doing well, and since we’re still a capitalist country we can invest in the stocks of the likeliest winners.
Let them eat their sand and drink their damn oil.
Freefall is right. Damn
No honor among thieves.
it is good to have oil prices lowered, but the US Government must break the cartel by giving them zero interest loans to fight the cartel till the price recovers.
Now is the time to break their backs
Don’t repeat the mistakes of the past.