It did rise up and briefly reach today's price, but fell back down in 2004.
Posted on 12/19/2014 12:11:58 PM PST by C19fan
How low can it go — and how long will it last? The 50 percent slump in oil prices raises both those questions and while nobody can confidently answer the first question (I will try to in a moment), the second is pretty easy.
Low oil prices will last long enough for one of two events to happen. The first possibility, the one most traders and analysts seem to expect, is that Saudi Arabia will re-establish OPEC’s monopoly power once it achieves the true geopolitical or economic objectives that spurred it to trigger the slump. The second possibility, one I wrote about two weeks ago, is that the global oil market will move toward normal competitive conditions in which prices are set by the marginal production costs, rather than Saudi or OPEC monopoly power. This may seem like a far-fetched scenario, but it is more or less how the oil market worked for two decades from 1986 to 2004.
(Excerpt) Read more at blogs.reuters.com ...
There are stations around selling alcohol-free gasoline; it’s slightly more expensive, but the increased mileage usually offsets the higher price per gallon.
Agree... the supply and demand aspect of Oil effects it about 10%. The major factors are geo-political... and its been that way for decades.
Exactly.
And let’s not forget, our Fearless Leader (”Fearful Leader?”) has hugely devalued the dollar, thus hugely increasing the cost of imported crude and gasoline - and of course, everything else as well.
It did rise up and briefly reach today's price, but fell back down in 2004.
In our area the marinas, on the fresh water lakes, all sell gasoline with no ethanol. But many of them are not listed at the Pure-Gas web site.
On the other hand, propane is going thru the roof.
Seems like a decade ago.............
The KSA is selling below production cost. Their production cost is around $50 or so per BBL.
They have $800B in reserves, so they can do this for a while.
they could have except that OPEC controlled the market because they controlled supply. With the Obama administration's efforts to keep oil production low in the U.S., they ,(OPEC), could maneuver the oil prices as they wished, and they wished them high.Now that independent oil producers in this country have ignored Obama, advanced new techniques such as Fracking, and created an overwhelming new supply of oil at a reasonable price, the middle east is in a panic. They keep the price low now to attempt to put the U.S. out of the production business....it is more expensive to explore and develop new sources that to just pump existing ones....won't happen, the prices will stay low for a little while and they gradually increase to where they belong and in my opinion that is about 60-70 dollars per bbl.
They’ll havta do without that new RR every six months................poor babies...........
But when the price goes back up again, the drillers will be back on the market..........up,down,up down,like a roller coaster..............
People need propane. Best price for my PADD (2) is usually 1st week of September. It varies, but it will rise steadily until march and then decline through summer.
People do not need gasoline, except those of us who are still working. Most folks only need enough gas to go to the grocery store to use their food stamps.
Of course, as it always has been.
The ultimate cure for high oil prices is caused by high oil prices.
The ultimate cure for low oil prices is caused by low oil prices.
It really is supply and demand, combined with a market with limited elasticity and restricted ability for fast growth of supply.
Price fixing.
Where?
It has fallen nearly 50% in 3 months for the suppliers.
Residential prices are dropping slightly nearly everywhere.
http://www.eia.gov/dnav/pet/pet_pri_wfr_a_EPLLPA_PRS_dpgal_w.htm
It’s like feeding monkeys.
Throw one peanut and they all pile on to get it.
Throw a hand full and they each seek their own............
Not in Red Hampshire...up 80 cents per gallon since mid-October...for consumers, that is.
This could change your mind?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.