Posted on 03/11/2020 3:23:50 PM PDT by brownwill6767
New Mexico’s oil boom could soon turn to bust after world prices for crude crashed on Monday.
The price for U.S. benchmark West Texas Intermediate bottomed out at $31.13 per barrel when trading closed Monday afternoon, down nearly 25% from $41.28 a barrel last Friday.
That’s the sharpest one-day plunge in prices since Jan. 17, 1991, when the U.S. launched Operation Desert Storm in Iraq, and it’s the lowest level for WTI since early 2016, when the industry was mired in a two-year downturn.
(Excerpt) Read more at abqjournal.com ...
Last week, Saudi Arabia proposed a collective 1.5 million barrel-per-day cut in production to boost prices as the contagion spreads across the globe. But Russia rejected the proposal, causing a breakdown in negotiations even to extend previous agreements already in place since 2017 that have withheld 2.1 million barrels a day from the market.
The fallout led to an open price war Sunday, when Saudi Arabia said it would immediately slash prices for its own crude exports by up to $8 a barrel and begin increasing oil production once the 2017 agreement expires in late March.
The problem is not the free market, the problem is that nutcase governor.
The Arabs, Russians AND the Chinese are trying to bring down TRUMP AND AMERICA!!!
It’s indeed diabolical how all of this maelstrom was triggered shortly after Trump’s impeachment acquittal.
These foreign enemy forces have joined our own domestic RATs in last ditch efforts to sabotage PDJT’s reelection.
Pray!!
Great info.
Actually I think king MBS is helping bring down Iran to it’s knees by dropping price of oil. Do not worry oil price CAN NOT stay down long. Have you seen video’s of car traffic in China & India where 1/3 of world’s people live?
Russia and Saudi’s are playing a game of chicken to see who blinks first. As shell oil production in US & Canada comes to a grinding halt with oil prices below $45/barrel, oil supplies will take a nose dive, and prices will jump back in a hurry. Supply & demand still works.
That’s a shame...
It's a global effort supported by the WHO and I suspect some of our
own people.
For instance, by the time the disease hit our shores, the CDC had
no test kits?
I've always suspected these people would kill their next of kin to
attain their goals.
Makes you wonder what the political make-up of those dumping stock right now is.
Not logical. Why would China hurt their own population by releasing the virus intentionally in Wuhan city? What do they have against Italians where infection rate is many times higher already than here?
It was accidental release of virus by workers in the Chinese lab selling dead animals used for experiments to make some extra bucks on the side.
The democrats never let any crisis go to waste.
I believe everyone should look at this as a free benefit.
There is no reason not to rejoice at a short term gain. I suppose each complainer on this thread would give back gambling winnings, too.
I respectfully disagree. America is not the only other oil producing country. They are trying to save their own skins. If it means another country’s leader suffers, so be it. DemonicRATS, on the other hand, are doing everything they can to bring Trump down. If exploiting fears of coronavirus provides that opportunity, so be it.
“ Makes you wonder what the political make-up of those dumping stock right now is. ”
***
Don’t know about the politics. But, I’m on a hold on my stock. And, will be buying more in a few weeks.
If it is planned, they should have waited until September. My hope is that this will all die down during the next few months.
IMHO Trump will establish a protective tariff on oil to keep the frackers from dying quick. IMHO it’s not safe to do nothing.
So what exactly changed in all of this except perception.
Are contracts that short. Used to be production hedged costs with long term contracts or futures contracts.
What is the REAL price of oil. We are looking at the speculative price.
You forgot the Dimocrats.
How is Burisma doing, I should wonder.
Yep, doesn’t she want to shut down the oil industry in NM? And now she’s complaining about the drop in the oil price.
I’m not complaining.
I’ve never liked seeing oil monopolized like the DeBeers diamond market.
The China meltdown has cut demand. Russia needs every ruble it can get, so won’t limit production. OPECkers have to play along with reduced prices to keep any sales at all.
This “collapse” gives SOME idea of what the real “price” of oil is, which is a heck of a lot less than the Bush clan has been propping up along with the murderous Saudis.
I hope the US is filling its national reserves while it can.
Oh NO....I ALWAYS ASSUME THE DEMS ARE WITH OUR ENEMIES!! THAT WAS A GIVEN!
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