Posted on 01/05/2015 3:53:53 AM PST by blam
Stefano Pozzebon and Reuters
January 5, 2015
U.S. crude and Brent futures dropped to fresh 5-1/2-year lows on Monday as worries about a surplus of global supplies amid weak demand continued to drag on oil markets.
At 11.30am GMT (6.30am ET) Brent was trading at $55.35 a barrel, losing 2%.
Previously, it temporally slipped as low as $55.16, its the lowest values since May 2009.
Here is a chart of how it looked at 11.30am GMT (6.30am ET):
Brent 5.1.15 11.30am Investing.com
U.S. crude slid as low as $51.40 a barrel, also its lowest since May 2009, and at 11.35am GMT (6.35am ET) was just trading at $51.70 a barrel, still losing $1.
(snip)
(Excerpt) Read more at businessinsider.com ...
NEW YORK (Reuters) - As a war of nerves between U.S. shale producers and Gulf powerhouses intensifies, OPEC's biggest members are counting down the months until their upstart rivals lose the one thing shielding them from crashing oil prices — hedges.
The dollar’s impending breakout will only accelerate this trend
Gasoline is still $2.14 in central Wisconsin, with diesel $3.40 +/-
Still have a ways to go to get under $2.00 gas
I’ve seen gas as low as $1.79 a gallon in Mobile.
In Louisiana it’s below $2.00 all over
A lot of things have happened since American Graffiti, but a primary ingredient to the make-up of our freedom ... the cost of gasoline ... was something we couldn't overcome
We came up with a million ingenious ways to sidestep it ... electric, alternative fuels, etc., .. but the fact was and is ... we need gasoline.
Now we have it as a more acceptable part of our daily liabilities and by GOD, we love to drive.
So, let's go see the USA in our Chevrolet, sing with Kate, "God Bless America", thumb through our Norman Rockwell coffee table display book and become AMERICAN again
Let the economists worry about the dollar and the future of the IMF ... WE got some LIVIN' to do !
Canada’s Richest Grain Family Betting on Rebound in Oil
http://www.bloomberg.com/news/2015-01-04/canada-s-richest-grain-family-betting-on-rebound-in-oil.html
Jan 5, 2015
A decade after expanding its grain business during a slump in prices, the Richardson family of Winnipeg, one of the richest in Canada, is making a similar bet on oil.
With crude futures collapsing to the lowest in five years, the Richardson’s Tundra Oil & Gas unit last month agreed to buy 550 wells in Manitoba, part of a $410 million divestiture of Canadian assets by EOG Resources Inc. (EOG) Tundra’s biggest purchase ever will boost its output this year by one-third to 32,000 barrels a day, and Chief Executive Officer Ken Neufeld says he remains on the lookout for more deals.
Oil Glut Seen Setting Sail as Contango Widens: Chart of the Day
http://www.bloomberg.com/news/2015-01-05/oil-glut-seen-setting-sail-as-contango-widens-chart-of-the-day.html
Jan 4, 2015
The CHART OF THE DAY compares today’s forward curve for oil and the one from six years ago. It shows how prices in August are about $5.50 a barrel higher than in February. To cover the costs associated with storing oil at sea — hiring a ship, fuel, insurance, finance — that gap needs to widen to $6.50 a barrel, according to E.A. Gibson Shipbrokers Ltd. When future costs are above immediate ones, the market structure is called contango, the opposite is backwardation.
It’s being reported that here in Houston 100,000 jobs will be lost over the next six months due to the drop in oil prices.
I bought gas Sunday in NW Houston for $1.64 9/10.
Buy stock in RV manufacturers.
——Buy stock in RV manufacturers——
Interesting thought.
As I travel around, outside of most cities I see one or maybe two RV dealers and a few Camping Worlds. There are an incredible number of the units in all sizes. The big busses, the Class A’s are present in droves
Who is going to buy all these Vehicles? After they get bought where are they going to go?
I don’t think there are enough RV parks, KOA’s or state parks to accommodate all the folks the RV dealers think are going to hit the road.
More good news. The economy might survive the Feral Governments best efforts.
We are living on debt financed by more debt.
My prediction : World wide economic collapse
It's not a matter of if but when .
Falling Oil Spells Boon for Most of Asia’s Economies
http://www.freerepublic.com/focus/f-news/3243569/posts
With oil at its lowest price in more than five years, governments in countries such as India and Indonesia can spend money on much-needed infrastructure and other growth projects without stoking inflation. Falling crude prices also give China’s flagging economy a boost, allowing its central bank—and others in the region—to ease rates even as a recovering U.S. looks to do the reverse, economists say.
Combined with loose monetary policy and a gradual recovery in global demand for goods and services, falling oil prices should help lift emerging Asia’s gross-domestic-product growth this year to 4.7% from an estimated 4.3% in 2014, according to Capital Economics, a consulting firm.
The left pretended that we didn’t need gas.
Who is to blame for the shaky economy we are in? Look no further than the government, and Dent contends, “What’s happened is the government has created a bubble with all this low short- term interest rates and all this stimulus, and their only defense is to keep this bubble going. . . . We got the greatest bubble in debt in modern history by far. We have the greatest asset bubble across the world in real estate, commodities, stocks; everything is in a bubble. When these bubbles burst, the whole system comes down. They are doing everything to prevent it, but everything they do to prevent it from blowing up is making it worse. This is a game they cannot win–mark my words, cannot win, and we are going to see a major crisis . . . especially over the next two years. These falling oil prices trigger these fracking firms. They have 20% of the junk bond high-yield debt in the United States, and that’s all it takes to trigger another financial crisis, just like the subprime crisis back in 2008. All it takes is a trigger and the whole debt thing comes down.”
http://usawatchdog.com/oil-price-plunge-trigger-for-next-global-crisis-harry-dent/
So are you changing to a US only prediction?
economies are all connected now. 1 domino falls then the rest will follow
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