Oil touches 3-1/2 year low under $50 as demand weighs

Reuters on Yahoo ^ | 11/20/08 | Reuters

[kpp_kpp]

but but but we’re running out of oil...

[trumandogz]

What do you think the price of oil should be?

That is for the market to decide.

Over the last year or so, companies in the oil industry have been budgeting projects with oil at $85.00. This was the case even this summer when oil was at $140.00.

Since the decline in the price of oil some drilling projects have been delayed or even cancelled. This is not to say that there will be no more domestic drilling but just that the rate of increase will slow and that the exploration of new and especially hard to reach sources or sources that are expensive to explore will not be drilled.

So, yes, it will be cheaper to buy oil from foreign sources than it will be to find more of our own.

[PeterPrinciple]

“What makes it hard to call a bottom

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ROT (Rule of thumb) It will drop to a third of the high and fairly quickly retrace to 2/3 of the high.

We have reached the 1/3 of high, now let’s see about the next step.

[waverna]

So Ford & GM should be OK now, right?

[thackney]

Are those numbers for China and India? Not arguing, just asking.

No. The OECD includes: Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Spain, Sweden, Switzerland, Turkey, United Kingdom and the United States.

It is more difficult to get reliable numbers from countries like China, Russia and others. But typically, they are much smaller. China for example has a much smaller SPR than the US.

[magellan]

Currently the three Crude Oil indexes are below $50/bb.

And the Nymex RBOB Gasoline Future broke below $1/gal.

http://www.bloomberg.com/markets/commodities/energyprices.html

Gasbuddy shows the lowest reported gas in the U.S. as $1.577 in Kansas City.

[RightWhale]

RBOB gasoline is 0.8825, which is 38 a bbl, less than crude.
NYMEX crude is 39.66
Prudhoe crude was 28.27 last Friday.

[thackney]

It continues to amaze me that crude oil is selling for more than gasoline. Distillates has become the source of profits and gasoline looks close to break-even to the refinery.