Oil is still dropping

[KevinNYC]

A year after this thread. (http://www.insidehoops.com/forum/forumdisplay.php?f=7)

Oil is going down again. Well under $40 a barrel. (http://www.reuters.com/article/us-global-oil-idUSKBN0TX02920151214#ALeRJ3euQMfZYaUL.99)


Oil prices fell for a seventh straight session on Monday, coming close to 11-year lows, on growing fears that the global oil glut would worsen in the months to come in a pricing war between leading OPEC and non-OPEC producers.

Brent crude LCOc1 fell by 3.4 percent to below $36.70 a barrel for the first time since December 2008 and U.S. West Texas Intermediate (WTI) CLc1 sank 2.5 percent below $34.70 a barrel.

Brent traded less than 50 cents above the lows last seen during the 2008 financial crisis of $36.20 a barrel. If Brent falls below that level, that will be its lowest since mid-2004, when talk of a commodity super-cycle was only beginning.

WTI's financial crisis low was $32.40 in December 2008.

[KevinNYC]

Opec is pumping at record levels.

The ruble is $70 to the dollar at the official rate. A friend told me when it hit this rate, her parents were paying near 100-1. GDP was down 4.1% last quarter and inflation is expected to be 12.5% next year.

In Venezuela last week
[QUOTE]Government opponents surged to a rare victory here on Sunday in key congressional elections framed by the country’s deep economic crisis, claiming a legislative majority for the first time in years and handing a significant setback to the heirs of former President Hugo Ch

[KevinNYC]

In one of the recent employment reports, the only sector in the US that was losing jobs was mining which includes oil drilling.

[KevinNYC]

Sanctions are not yet lifted on Iran. When sanctions are lifted, analysts expect another 400,000 barrel a day increase over what Iran currently produces. Also affecting prices.

[DCL]

called it.

but i think prices are getting attractive if you can hold them for the long-term.

[netsfan549]

called it.

but i think prices are getting attractive if you can hold them for the long-term.


A LONG TERM..

I called it as well :applause:

[plowking]

How long can they keep this "over-supplying" up?

Profits are down to half of what they were last year I believe. Good for the short term, but a simple way of trying to thin out competition, which will lead to even bigger spikes in price in the future.

[DCL]

How long can they keep this "over-supplying" up?

Profits are down to half of what they were last year I believe. Good for the short term, but a simple way of trying to thin out competition, which will lead to even bigger spikes in price in the future.

yes, expect a spike some time later. not even gonna try to predict when though...

but that's when they go, "we got you, b!tches!" :oldlol:

[Velocirap31]

Just like how they weeded out all the mom and pop gas stations. Sell low and kill the competition, then take control and drive prices up.

[~primetime~]

I feel like it's time to buy up oil related stocks

It might get a little lower than this, but not much...can only go up from here

[Velocirap31]

I feel like it's time to buy up oil related stocks

It might get a little lower than this, but not much...can only go up from here

UWTI. This is where you'd make bank if you're right.

[~primetime~]

UWTI. This is where you'd make bank if you're right.
Yeah, it just might take 2-3 years before you cash in though.

[nightlight]

I feel like it's time to buy up oil related stocks

It might get a little lower than this, but not much...can only go up from here

I don't think you've thought this through.

Where does that leave you when the market reacts against rising oil? Climate change is big business in 2015.

[dunksby]

Good, I'm loving the gas prices.

[~primetime~]

I don't think you've thought this through.

Where does that leave you when the market reacts against rising oil? Climate change is big business in 2015.
when oil is lower than $33, oil producers make no profit...they lose money

It's currently at $34....if it goes lower then companies are just taking their losses.

It is hitting rock bottom...it might stay this way for a year or two, but it won't stay this low forever. The population is still rising and exploration for oil has stopped all together...it will eventually go back up.

[Nanners]

when oil is lower than $33, oil producers make no profit...they lose money

It's currently at $34....if it goes lower then companies are just taking their losses.

It is hitting rock bottom...it might stay this way for a year or two, but it won't stay this low forever. The population is still rising and exploration for oil has stopped all together...it will eventually go back up.

not really, the cost of producing a barrel of oil varies wildly depending on where you are.

http://www.forbes.com/sites/jamesconca/2015/07/22/u-s-winning-oil-war-against-saudi-arabia/



Saudi Arabia – $21/bbl

Middle East – $24/bbl

Russia – $26/bbl

Mexico – $42/bbl

S.America/Europe/Eurasia/Africa – $56/bbl

North America – $60/bbl

Gulf Deep Water – $70/bbl

Canada tar sands – $82/bbl

other unconventionals – $100/bbl

[coin24]

And as usual dumb fu*k Australians getting ripped off..
Fuel price goes from $1.30 per litre for 98 octane, to $1.50 overnight for no reason.
:facepalm :facepalm

[~primetime~]

[QUOTE=Nanners]not really, the cost of producing a barrel of oil varies wildly depending on where you are.

http://www.forbes.com/sites/jamesconca/2015/07/22/u-s-winning-oil-war-against-saudi-arabia/



Saudi Arabia

[Nick Young]

Thousands of North Dakotans are getting screwed and losing their jobs due to this drop in the price of oil.:mad:

[Velocirap31]

Refineries are just taking a bigger slice of the pie than they used to now, so don't expect to see the price reflected at the pumps, which we haven't seen.

[~primetime~]

Refineries are just taking a bigger slice of the pie than they used to now, so don't expect to see the price reflected at the pumps, which we haven't seen.
seriously?

I saw gas at $1.65 the other day...it's like the 80s

[Nanners]

Kuwait – $8.50 a barrel
Saudi Arabia – $9.90
Iraq – $10.70
United Arab Emirates – $12.30
Iran – $12.60
Russia – $17.20
Algeria – $20.40
Venezuela – $23.50
Libya – $23.80
Kazakhstan – $27.80
Mexico – $29.10
China – $29.90
Nigeria – $31.60
Colombia – $35.30
Angola – $35.40
Norway – $36.10
United States – $36.20
Canada – $41.00
Brazil – $48.80
United Kingdom – $52.50


and IIRC the average is $33...that is the 'magic number' I think, going below that will cause many to shut down.

no doubt for many countries it is no longer financially viable at $33, but many of the middle eastern countries are able to go much lower.

whats your source for these numbers btw? dont disagree or anything, id just like to take a look for myself.

[~primetime~]

no doubt for many countries it is no longer financially viable at $33, but many of the middle eastern countries are able to go much lower.

whats your source for these numbers btw? dont disagree or anything, id just like to take a look for myself.
http://247wallst.com/energy-economy/2015/11/24/us-cost-to-produce-oil-is-36-a-barrel/

[Velocirap31]

seriously?

I saw gas at $1.65 the other day...it's like the 80s

You're lucky in the US. Here in Canada, we're ripped off, but our crap dollar is to blame as well. The US refineries make bank off of us because we have plenty of oil, but no refineries.

The price in Ontario is typically $1/litre ($3.78/gallon). British Columbia and out east is much worse at a typical $1.30/litre ($4.9/gallon).

[Kungfro]

You're lucky in the US. Here in Canada, we're ripped off, but our crap dollar is to blame as well. The US refineries make bank off of us because we have plenty of oil, but no refineries.

The price in Ontario is typically $1/litre ($3.78/gallon). British Columbia and out east is much worse at a typical $1.30/litre ($4.9/gallon).
I filled up the other day for 0.86/L, but then I feel like Alberta should be cheaper.

[SpecialQue]

but obama

[Draz]

We Finna run out of oil soon

[johndeeregreen]

You're lucky in the US. Here in Canada, we're ripped off, but our crap dollar is to blame as well. The US refineries make bank off of us because we have plenty of oil, but no refineries.
Probably would also have to do with the fact we pay over double the amount per gallon in taxes opposed to the United States.

[Velocirap31]

Probably would also have to do with the fact we pay over double the amount per gallon in taxes opposed to the United States.

Yeah. $1.05/gallon is tax alone here in Ontario.

[dubeta]

A smart investor will short upstream oil companies and buy downstream companies. Then rebalance once U.S shale companies go bankrupt.




Oh wait, ISH is full of idiots :facepalm

[BigNBAfan]

I think people forget countries buy on credit and that's generally estimated on oil prices being X amount. Certain countries like Venezuela need say 40 dollars per barrel to break even, that's because even though they're producing it at 30, the 10 dollar per barrel is needed to pay off loans otherwise it's a loss one way or another.

When prices of oil go below cost of production, they accumulate debt because they cannot pay off their loans and thats exactly what happened there, plus the US considering them a state of terrorism or whatever and put sanctions to starve its people since they dislike their prez.

[DCL]

historical chart of crude

http://oi63.tinypic.com/nlbitc.jpg

kill the competitors first. then kill the customers when you have all the market power.

[fiddy]

This. Paying $1.80 for gas feels guud
1.8 for a gallon?!

[bdreason]

OPEC trying to price out the little guys. I imagine U.S. oil fracking has come to a stand still.

[fiddy]

OPEC trying to price out the little guys. I imagine U.S. oil fracking has come to a stand still.
OPEC is not that big anymore, they control about a third of the world's oil market. They are also trying to suffocate their competitors in Brazil as well as those in the U.S.

[poido123]

And as usual dumb fu*k Australians getting ripped off..
Fuel price goes from $1.30 per litre for 98 octane, to $1.50 overnight for no reason.
:facepalm :facepalm


We have record low oil prices yet only 3 weeks ago the price of petrol jumped 30 a litre in my home town.


Fcking thieving muthfckers :oldlol: We apparently have paid petrol watch dogs that are supposed to keep these oil companies honest.


So much corruption in this world :no:

[coin24]

We have record low oil prices yet only 3 weeks ago the price of petrol jumped 30 a litre in my home town.


Fcking thieving muthfckers :oldlol: We apparently have paid petrol watch dogs that are supposed to keep these oil companies honest.


So much corruption in this world :no:


Australia is fkn disgraceful. we get ripped off with everything..:facepalm

When the barrel price was high that was the reason, when it's a third of the price then the reason is our dollar.:lol :facepalm the Australian government, where the only policy is sell every single asset, over tax the shit out of hard working people and every avenue they can take to get ahead, then hand out welfare to every lazy scumbag:facepalm

[Hawker]

We need a bailout. :lol

A company I put $400 in after the recession (oil price was high AF and then dropped), at $4.10 a share recently declared bankruptcy. First lesson in stock trading for me.

The stock never went back up that much when the oil price increased again.

I'm thankfully still employed but I know quite a few that have been laid off. I've always been rather stingy but right now I'm just banking everything. Working hard, keeping my head low and saving.

[Hawker]

Australia is fkn disgraceful. we get ripped off with everything..:facepalm

When the barrel price was high that was the reason, when it's a third of the price then the reason is our dollar.:lol :facepalm the Australian government, where the only policy is sell every single asset, over tax the shit out of hard working people and every avenue they can take to get ahead, then hand out welfare to every lazy scumbag:facepalm

Australia is one of the most livable places in the world. Ya'll are absolutely spoiled.

[poido123]

Australia is fkn disgraceful. we get ripped off with everything..:facepalm

When the barrel price was high that was the reason, when it's a third of the price then the reason is our dollar.:lol :facepalm the Australian government, where the only policy is sell every single asset, over tax the shit out of hard working people and every avenue they can take to get ahead, then hand out welfare to every lazy scumbag:facepalm


Government won't put any kind of effort to curb this because they get more tax the higher petrol goes.

We also pay data allowances for internet :oldlol:


It's unheard of in the rest of the world :facepalm

[coin24]

Government won't put any kind of effort to curb this because they get more tax the higher petrol goes.

We also pay data allowances for internet :oldlol:


It's unheard of in the rest of the world :facepalm


Our internet is 3rd world quality. The NBN is was a complete waste of $70b:facepalm

And yeah the govt is 100% behind the fuel scam, they have already announced a new tax on it a further 9c per litre I think it is

[coin24]

Australia is one of the most livable places in the world. Ya'll are absolutely spoiled.


How so? It is rapidly spiralling down the toilet..

[poido123]

How so? It is rapidly spiralling down the toilet..


Yep.

I hear a lot of the old timers say Australia was great through the 60s, 70's, 80's and even 90's.


Privatised companies are taking over which means more casual work and less stability.

Parking zones and charges are out of control, fines are getting ridiculous, there just seems to be a fee and tax on just about everything and nothing seems to stop these things from happening.


If you're a low to middle income earner, you are living pretty tight. Just seems like everything that used to be good is slowly disappearing.


If it keeps going this way, Australia will be a shithole in 20 years. More troubled immigrants sponging off the welfare is only adding to the problem.

[LikeABosh]

I work the oil fields in ND and recently was laid off. Shit is bad out there.

[fiddy]

I work the oil fields in ND and recently was laid off. Shit is bad out there.
So, we expect the U.S. to bomb Saudi Arabia soon?