Sounds like a great buying opportunity, what is the best way to invest in oil?
Well, if it goes down to $30, there would be little incentive to produce more oil. This will of course cause the price of oil to slowly rise again.
We’re just returning to the good old days of the 1990’s.
It’s just a cycle.
Who knows where this will end? But I sure wouldn’t mind seeing my oil, gas, and electric bills go down, despite Obama’s best efforts to make them all skyrocket.
Hey OPEC - eat sand!!
Let’s re-visit the whole Barrel for a Bucket scenario.
Bets being taken now:
Gas prices will fall to $2.00/gallon
Air travel fuel supplements will be removed
Heating oil much cheaper
None of the above
Nicolas Maduro of Venezuela already had a “Big Mac Attack” in his pants at the thought of oil dropping that low. The really bad news for him is that there is no more toilet paper (or “papel de tush” as we say in Spanglish) for him to clean up himself.
Massive deflation followed by massive inflation.
Possible...??
As much as I like paying less for gas, be aware, this is all about OPEC, particularly our ‘pals’ the Saudis, driving down the price, in order to put US production, via fracking, out of business. Once this happens, the price will shoot up, like a rocket.
Thanks.
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.
Soooo sad.
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.
Low oil prices are bad for many US States’s economies. Also, it means that domestic drilling becomes less economical. Drill baby drill will suffer for sure.
can you say fear mongering?