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OIL GIANT WARNS: Crude Could Crash To $30
Financial Post businessinsider.com ^ | 11-30-2014 | Claudia Cattaneo, Financial Post; Myles Udland

Posted on 11/30/2014 6:03:03 PM PST by blam

Myles Udland
November 30, 2014

More than 50% lower.

That is how far Canadian billionaire Murray Edwards, chairman of Canadian Natural Resource, thinks oil prices can fall from here.

Speaking with Canadian business publication Financial Post, Edwards said, "Prices could spike down to $30, $40. It got down to $35 in 2008, for a very short period of time."

Edwards told Financial Post's Claudia Cattaneo that, "On a given day you can have market fluctuations where prices fluctuate far more than the underlying economic value of the unit," adding that if oil falls to $30 or $40 a barrel he doesn't expect it would stay that low.

(snip)

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: commodities; energy; fracking; oil; opec
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To: blam

We have been led to believe that oil and gas prices are set on the basis of demand & futures trading.

As I see it, this is one of 2 things: An epitaph on confidence in the world economy (makes you wonder what traders know that we don’t) or a ‘grand manipulation’.

On the latter, the big question is who has the $$ to manipulate world markets and who benefits from a temporary oil crash?

Regardless, there is one thing certain: An ‘event or events’ will occur that will cause the price of oil to skyrocket in response.

It’s so nice to live in a world governed & manipulated by people with such power... /s

In the meantime, those with simpler minds will all rejoice at the lower prices at the pump, oblivious to what it all means, geo-politically, economically and to world stability.


41 posted on 11/30/2014 7:01:21 PM PST by logi_cal869 (-cynicus-)
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To: Defiant

Is that available to the little guy or only if you buy a million gallons at once?


42 posted on 11/30/2014 7:02:25 PM PST by Blood of Tyrants (Good Muslims, like good Nazis or good liberals, are terrible human beings.)
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To: blam
OIL GIANT WARNS: Crude Could Crash To $30

No, please, anything but that.
Say it isn't so.
Whatever will we do?
43 posted on 11/30/2014 7:03:15 PM PST by servo1969
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To: thackney

Presumably when crude oil goes down the corresponding taxes go down by a similar amount. 63%+13%=76%.


44 posted on 11/30/2014 7:03:45 PM PST by Chad_the_Impaler
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To: blam
LIfe Is Just A Bowl Of Cherries by Vic Irwin and his Orchestra, 1931
https://www.youtube.com/watch?v=gC-2pHzj0DQ


45 posted on 11/30/2014 7:07:14 PM PST by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
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To: Maine Mariner

“The Iranians and the Venezuelans riot since their governments cannot sustain their spending levels at $40 to $50 a barrel. I am not sure it drops to $30.00 but possible.
$40 to $50 seems more likely.”

Pleeeze, make it happen by Xmas! Both country’s populations deserve a break from their despotic governments.


46 posted on 11/30/2014 7:09:58 PM PST by vette6387
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To: vette6387

Agreed!


47 posted on 11/30/2014 7:11:19 PM PST by Maine Mariner
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To: Chad_the_Impaler
Presumably when crude oil goes down the corresponding taxes go down by a similar amount.

Most gasoline taxes are fixed per gallon. Some states have some portion that is percentage based.

http://www.api.org/oil-and-natural-gas-overview/industry-economics/~/media/Files/Statistics/State-Motor-Fuel-Excise-Tax-Update-Oct-2014.pdf

48 posted on 11/30/2014 7:13:08 PM PST by thackney (life is fragile, handle with prayer.)
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To: blam

Soooo sad.


49 posted on 11/30/2014 7:13:10 PM PST by Thud
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To: plain talk
actually it bodes well for the economy. consumers and businesses will benefit from lower transportation costs.

Just wait and see.

50 posted on 11/30/2014 7:15:14 PM PST by The_Media_never_lie (The media must be defeated any way it can be done.)
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To: Maine Mariner
The Iranians and the Venezuelans riot since their governments cannot sustain their spending levels at $40 to $50 a barrel.

I don't remember that happening 6 years ago.

Image and video hosting by TinyPic

51 posted on 11/30/2014 7:18:14 PM PST by thackney (life is fragile, handle with prayer.)
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To: thackney

Yes, but each country has a larger population and in the case of Venezuela a lot more socialism during the past six years and more promises to the poor.


52 posted on 11/30/2014 7:22:10 PM PST by Maine Mariner
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To: RedMDer

Can anyone pontificate on what happens if this happens?


53 posted on 11/30/2014 7:22:52 PM PST by stillfree? (Tagline? We don't need no stinking taglines!)
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To: familyop
"King George expects every marriage to fill up a carriage."

LOL.

54 posted on 11/30/2014 7:25:46 PM PST by blam (Jeff Sessions For President)
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To: blam

When this last happened at the height of the cold war in 1985, it followed a visit by then Vice President George H. W. Bush to Saudi Arabia. Bush convinced the Saudi royal family it was in their best interest to reduce the price of crude oil to regain market share. As a beneficial side effect, Russia would lose a major source of foreign exchange. This followed a major investment by Russia in radar capability, which was largely negated by the publicity of the US then recently developed stealth technology. With reduced foreign exchange, Russia was unable to replicate the stealth technology and the Soviet Union failed. Unfortunately, the economies of the oil producing states, Texas among the most extreme example, were crippled.

This time around, Obama has visited Saudi Arabia twice this year, Bidden has called the Saudi royal family once and the UAE twice. This time it appears the primary objective is to cripple the oil producing states economies, principally Texas, which has been a thorn in Obama’s side. The beneficial side effects of reducing Russia’s foreign exchange, increasing Saudi market share, and reducing the foreign exchange of Iran, along with the positive effect on the economies of states more aligned with Obama, are perhaps just that, side effects.

By the way, crude prices dropped from about $32 in 1985 to a low of $8 in 1986. That is a 75% drop. Prices did not return to $32 until 2003.


55 posted on 11/30/2014 7:28:49 PM PST by LOC1 (We need a new President.)
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To: Sawdring; gaijin
I prefer Kitco's silver chart:


56 posted on 11/30/2014 7:30:24 PM PST by blam (Jeff Sessions For President)
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To: Maine Mariner

Venezuela’s total government spending is down in the past 6 years, as a percentage of GDP.

http://www.heritage.org/index/visualize?countries=venezuela&type=4


57 posted on 11/30/2014 7:31:09 PM PST by thackney (life is fragile, handle with prayer.)
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To: thackney

Time for me to do more research before I post.


58 posted on 11/30/2014 7:32:41 PM PST by Maine Mariner
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To: Blood of Tyrants

Google it if you want. I don’t think Southwest bought actual gallons. I think they bought options on oil when it was at a low price, and when it went up, they didn’t care, because of the profits on the options. It allowed them to keep ticket prices down when oil prices went up. If they bought actual delivery of oil, even better. Either way, it was a textbook example of hedging.


59 posted on 11/30/2014 7:32:42 PM PST by Defiant (How does a President reverse the actions of a dictator?)
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To: LOC1
"By the way, crude prices dropped from about $32 in 1985 to a low of $8 in 1986. That is a 75% drop. Prices did not return to $32 until 2003."

I know. I lived in Houston from 1975 till 1995.

60 posted on 11/30/2014 7:33:00 PM PST by blam (Jeff Sessions For President)
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