Posted on 08/21/2015 10:14:04 AM PDT by thackney
http://online.wsj.com/mdc/public/page/2_3028.html?category=Energy&subcategory=Petroleum
We still haven’t gone through the purge yet. Things won’t rebound until after the purge.
If it gets to $25, I win a large bet with my uncle, if he makes it that long.
What is the perfect price for oil that makes everyone feel happy and safe?
We still havent gone through the purge yet. Things wont rebound until after the purge.
What do you mean by the “purge”? Thanks.
When they say a certain type of oil is a ‘benchmark’ does that mean other, less quality types, may be lower, or that the benchmark is the lowest of them all?...................
If you had an oil that made everyone feel happy and safe (is that you, Professor Snape?) it would still be worth whatever someone will give you for at, as my late father said about a sick chicken.
I’ll bet you could get a lot, though!
By definition, the price at which it currently sells. The very definition of a free market.
I remember how Bachmann was ridiculed about returning to $30 a bbl oil.
the “Throw Israel Under The Bus” dividend.
And a gallon of gas here in So Cal is still 3.50+.
Oil could be given away for free and CA would still charge $2.00/gal for it!
So a barrel of oil is the same price as it was in the 1990s.
However, we do not have 1990s gas rates of $1 a gallon.
And the hits keep comin’...
When the price is low enough, long enough, that the marginal producers shut down.
With the decrease in the amount of production, combined with a low price (which will help increase consumption), the price will bottom out and slowly rise. It will not happen overnight. I think the prices will have to bottom out for about 6 months. Can’t say what the bottom will be - maybe $30-$35. There may be some spikes downward, but those will be very short term.
In the spring, when the price hit the low 40s and began to rebound, that was not the market. That was manipulation. The manipulation could only last for so long. Now the market forces are taking over and driving the prices down again.
Then why am I still paying $2.79 a gallon in Washington state?
Wow, a lot of foreign economies that are based upon oil revenues are in for a serious world of hurt.
Indeed, that's why I say right now that we may be soon hitting bottom on pricing, because the current low price could cause Venezuela and/or Nigeria to stop exporting oil--and that will send the price of oil rising again because the two countries I mentioned are easily the largest oil producers outside of the Middle East.
Depends on whether you’re in TX, or not ;-)
19cents a gallon at the pumps?
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