Posted on 12/14/2014 5:52:32 PM PST by Red in Blue PA
TOKYO (Reuters) - Oil prices sank more than two percent to 5 1/2-year lows early on Monday on concerns about a supply glut and slower global growth, feeding fears for energy and commodities producers and exporters.
Investors were nervous after U.S. shares posted their biggest weekly fall in 2 1/2-years last week on losses led by energy sector, and as they expect the U.S. Federal Reserve to hint this week it is getting closer to raising interest rates.
U.S. crude futures fell more than 2.5 percent at one point to as low as $56.25 per barrel (CLc1) in quiet early Monday Asian trade, showing no sign of life even after a fall of almost 50 percent from the June peak.
The world's energy watchdog late last week forecast even lower prices next year on weaker demand and increased supply, sparking a fresh waving of selling.
(Excerpt) Read more at finance.yahoo.com ...
Well I always said, “What are the Arab states and others going to do if oil became cheap again or there were other sources to draw from”?
All this time with money coming in and many nations/Kingdoms/dictatorships have done nothing to develop their nations falling 100% onto the oil for revenue. You can’t eat oil last I heard.
If It stays down I am guessing we will see if Iran has a nuke real soon. Vlad will push that along if the Russian natives get restless.
Saudi Arabia won’t have any problems. But Iran will, along with Russia and a few other oil producers ... :-) ...
Don’t fill up your tank tonight. WAIT till tomorrow or Tuesday.
Gas war here.
Went from 2.14 to 1.94 overnight
Japan and Asia import their oil I think, they should be happy to see the price go down.
“Japan and Asia import their oil I think, they should be happy to see the price go down.”
From what I understand, they are part of the reason prices are falling. Their economies are in the toilet and they are not buying as much petroleum as they were a few months back.
The other thing to consider is all those RATS who said a few years back “why bother drilling, it will take ten years to get anything!” Yeah, it did, they did, and here we are finally getting our own energy house in order. I just wish we had a government who wanted to destroy, Russia, Iran and Venezuela as much as I do. The Fat Bastards in Saudi Arabia will most likely skate, but at least they are going to have to start emptying the ash trays in their Rolls Royces, a couple of times before trading them in!
Saudi oil i believe costs $10 a barrel to extract a big difference from the 60 and up from most shale projects.
I wouldn’t necessarily believe either stat. I could believe 10 for already developed fields and maybe the 60 for undeveloped, but once it is flowing, all bets are off. Sounds more like a disinformation analysis by the speculators as I have heard of many established fracking fields are closer to the 10 than the 60.
“Saudi oil i believe costs $10 a barrel to extract a big difference from the 60 and up from most shale projects.”
That’s not their problem. Their problem is that they’ve loaded up their Visa by all their capital spending and they need high-priced oil to pay off their debt. So if we need $60 to be self-sustaining, so be it. That’s a whole lot better than the $100 plus we’ve been paying w/o fracking. The ragheads also have a problem in that when their oil is gone, they have nothing to support themselves with.
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