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Oil prices plummet worldwide as OPEC infighting intensifies
washingtontimes.com/ ^ | December 10, 2014 | David R. Sands

Posted on 12/11/2014 12:06:33 AM PST by Berlin_Freeper

As the infighting among the world’s oil producers heats up, the global price of oil is heading down.

Open sniping between leading members of OPEC put new downward pressure on oil prices, with the price of benchmark U.S. crude falling another 5 percent, or $3.07, to $60.75 a barrel in trading Wednesday. Oil prices, which topped $107 this summer, have now fallen more than 40 percent since June.

Analysts said the price fall, which is having profound ramifications throughout the global economy, reflects a variety of factors, from slumping demand in China and political instability in Libya to new sanctions on Russia and the U.S. production boom tied to the shale oil fracking revolution. But the inability of OPEC and other suppliers to pull together and ease a glutted market is becoming a growing factor in the market equation.

(Excerpt) Read more at washingtontimes.com ...


TOPICS: Business/Economy; Foreign Affairs
KEYWORDS: energy; oil; opec
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1 posted on 12/11/2014 12:06:33 AM PST by Berlin_Freeper
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To: Berlin_Freeper

Good time to replenish the reserves.


2 posted on 12/11/2014 12:15:34 AM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults)
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To: Berlin_Freeper

I wonder if the infighting won’t turn into war fighting.


3 posted on 12/11/2014 12:29:52 AM PST by pleasenotcalifornia
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To: Jonty30; All

Looked at the futures markets for light crude and Brent crude. By 2021 Brent futures are under $83. By 2021 light crude is under $76, I think. Another site said that Canadian tar sands oil production is not practical for less that $95 except for less than 10% of production which can go as low as $75. With that situation, the Keystone XL Pipeline may loose momentum.

I read reports in Barrons suggesting that oil could go as low as $35 and be relatively stable around $65. Can’t wait to see the future.


4 posted on 12/11/2014 12:47:16 AM PST by gleeaikin
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To: pleasenotcalifornia

Amazing how a Cartel that keeps oil prices high, effectively extorting trillions from Western economies and transfering it to enemies of Western Civilization, is described in such glowing terms:

“But the inability of OPEC and other suppliers to pull together and ease a glutted market is becoming a growing factor in the market equation.”


5 posted on 12/11/2014 1:13:34 AM PST by marktwain (The old media must die for the Republic to live. Long live the new media!)
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To: gleeaikin

On the oil sands, although perhaps not on every part, I think established companies can make money she oil is only going for $40/barrel. There’s no exploration when it is this low, but what has been developed can still be profitable.


6 posted on 12/11/2014 1:13:37 AM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults)
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To: All

are the price of groceries going to go down along with the downward spiral of gas prices?the price of groceries and just about everything else went up drastically when gas prices went up why don’t they go down when gas prices go down?


7 posted on 12/11/2014 3:35:01 AM PST by bdog2995
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To: Berlin_Freeper
The U.S. Department of Energy on Tuesday again slashed its forecast for gas prices in 2015, now estimating that prices at the pump will average $2.60 a gallon. That’s nearly 25 percent below the 2014 estimate and the lowest full-year average since 2009. Based on current consumption patterns, that adds up to a $100 billion rebate for American drivers.

Obama: Whoo! Hooo!

I can raise taxes!!!

8 posted on 12/11/2014 3:36:30 AM PST by Pontiac (The welfare state must fail because it is contrary to human nature and diminishes the human spirit.)
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To: Jonty30
Good time to replenish the reserves.

The dims want to sell reserves. That's why we call them dim.

9 posted on 12/11/2014 4:20:51 AM PST by samtheman
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To: marktwain
Amazing how a Cartel that keeps oil prices high, effectively extorting trillions from Western economies and transfering it to enemies of Western Civilization, is described in such glowing terms: “But the inability of OPEC and other suppliers to pull together and ease a glutted market is becoming a growing factor in the market equation.”

Not so surprising since they believe that we should be punished by high energy costs - make it too cheap and Freedom happens...

10 posted on 12/11/2014 4:46:23 AM PST by trebb (Where in the the hell has my country gone?)
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To: Jonty30
Good time to replenish the reserves.

I assume you are talking about the Strategic Petroleum Reserve (SPR). Replenish implies it was drawn down. It is barely off the top peak.

Image and video hosting by TinyPic How much oil do you think we need in the SPR? How many days of OPEC oil imports?

11 posted on 12/11/2014 5:00:19 AM PST by thackney (life is fragile, handle with prayer.)
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To: gleeaikin
nother site said that Canadian tar sands oil production is not practical for less that $95 except for less than 10% of production which can go as low as $75.

That is just silly. Their production rate climbed for decades at lower prices. The growth will be slower at $60 than $100, but it will still continue growing.

12 posted on 12/11/2014 5:01:30 AM PST by thackney (life is fragile, handle with prayer.)
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To: gleeaikin

Not all oil sands projects are created equal, of course. Cenovus, which uses super-hot bursts of steam to melt seams of bitumen buried too deep to mine, says it can coax oil from the sands for between $35 and $65 (U.S.) per barrel, depending on geology and other input costs.

http://www.theglobeandmail.com/report-on-business/rob-magazine/is-oil-sands-development-still-worth-it/article21334385/


13 posted on 12/11/2014 5:02:30 AM PST by thackney (life is fragile, handle with prayer.)
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To: Berlin_Freeper

Full speed ahead, TX oil men. You can break OPEC if you don’t cave.


14 posted on 12/11/2014 5:06:23 AM PST by txrefugee
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To: Berlin_Freeper

High oil prices are a tax on the US middle class paid to mostly third world tin pot dictatorships. Screw ‘em.


15 posted on 12/11/2014 5:09:25 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: Jonty30
On the oil sands, although perhaps not on every part, I think established companies can make money she oil is only going for $40/barrel. There’s no exploration when it is this low, but what has been developed can still be profitable.

This is why the Saudi's can continue to pump at current levels. Their infrastructure has long been paid for, everything that comes out of their wells now (sans labor costs) is pure profit. They know they can pump at current levels for a very long time without feeling too much pain.

As opposed to the American fracking boom which has high start-up infrastructure costs that relies on higher costs per barrel to recover the high start-up infrastructure costs quickly.

The only way we win this pricing game against the Saudi's is via continued innovation in fracking and horizontal drilling to continue to drive OUR extraction costs per barrel down.

So the choice here is to place your money on the Saudi's, or place your money on American ingenuity and innovation to drive our own extraction costs down while increasing production to maintain profitability and pay off our own infrastructure quickly.

My money's on America. Never bet against good old fashioned American innovation and ingenuity. We STILL are the best in the world in that game.

16 posted on 12/11/2014 5:25:15 AM PST by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: bdog2995

No, everyone else in the supply chain gets to split that.


17 posted on 12/11/2014 5:29:50 AM PST by John W (Al Gore Global Warming King frozen stiffer)
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To: Berlin_Freeper; 3D-JOY; abner; Abundy; AGreatPer; Albion Wilde; AliVeritas; alisasny; ...

PING!


18 posted on 12/11/2014 5:33:30 AM PST by Tolerance Sucks Rocks (The mods stole my tagline.)
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To: usconservative
My money's on America. Never bet against good old fashioned American innovation and ingenuity. We STILL are the best in the world in that game.

Except when the feral government does everything it can to prevent it.
19 posted on 12/11/2014 9:22:14 AM PST by Old Yeller (Civil rights are for civilized people.)
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To: Old Yeller
Except when the feral government does everything it can to prevent it.

A valid point, which under normal circumstances I'd agree with ---- however even with the Obama Administration and EPA doing everything they can to prevent energy independence, we're still getting there!!

That's why I say don't count out good old American ingenuity and innovation. :-)

20 posted on 12/11/2014 2:26:04 PM PST by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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