Posted on 01/20/2015 2:46:49 PM PST by Berlin_Freeper
Oil fell as much as 5 percent on Tuesday after the International Monetary Fund cut its 2015 global economic forecast and key producer Iran hinted prices could drop to $25 a barrel without supportive OPEC action.
(Excerpt) Read more at reuters.com ...
Maybe if the world’s troublemakers are busy trying to salvage their foundering economies, they won’t have as much time to screw with the free world. Russia, Iran, Venezuela, even the FF’s in Saudi Arabia all need a attitude adjustment.
Whatever happened to the hysterical peak oil people? It seems the entire planet is made from oil. (Oh, and they’re finding it sometimes at 5,000 feet down, well, well below all those dinosaurs and primeval forests that are supposed to be the source of “fossil” fuel.)
http://www.amazon.com/The-Deep-Hot-Biosphere-Fossil/dp/0387985468
how I wish I could start a-buying right about now.
There has to be a floor somewhere. I couldn’t imagine it going to $10 per barrel. (the damn barrel probably costs more than that)
Saudi Arabia can weather it. The others can’t.
But Saudi over-production is specifically designed to kill new US oil production. I read some article saying that a week ago...basically the words of the Saudi economics minister.
I can’t see it going below $30-$35.
If it got to that level, and I was wealthy, I’d buy every bit of it I could and make a massive fortune. It WILL go back up, and by a lot!
Right now this is simply OPEC(the Saudis) killing off the smaller competition, who can’t weather the storm.
You can buy all you want but can you afford to rent the storage as in having tankers sitting at anchor waiting to unload. The demurrage has to be outrageous.
There’s no doubt about that but it’s even more complex I think. A lot of this is about Russia attempting to circumvent the petrodollar. Bankers control the price of oil as much as OPEC. This is the work of bankers as much as OPEC. Complicated doesn’t even begin to describe it.
I’m pretty much in the “break the new US frackers”. But I think it’s worse than that. I think the Saudis want to break them and force them to sell, and then buy them up through their intermediary western companies. Then it won’t happen again, and they’ll control that much more oil.
“Saudi over-production is specifically designed to kill new US oil production. I read some article saying that a week ago...basically the words of the Saudi economics minister.”
And it’s already having an effect. We might be advised to price our oil to the market so that we can continue to explore and produce. We simply can’t allow the Opeckers to hamstring us again. If it takes $50 a barrel to get it out of the ground here, we should be prepared as consumers to suck it up and pay it, then buy whatever we need to cover our total demand at the lower prices. It might be protectionist, but it will save our butts in the long run. $2.50 gas that you can get locally, is better than $1.50 that you can’t with out kissing some raghead’s a$$ and help him fund people who want to kill you and take over your country.
Excellent article. Thanks for sharing it.
Here’s the one I was referring to:
That Saudi prince seems clearly to be saying to me that the intent is to kill US frackers and have them bought up.
I agree with what you wrote here: $2.50 gas that you can get locally, is better than $1.50 that you can’t with out kissing some raghead’s a$$ and help him fund people who want to kill you and take over your country.
The only problem is the US doesn't seem to have a way to keep our oil at home.
“The only problem is the US doesn’t seem to have a way to keep our oil at home.”
We would if we had producers and a government that at least put the citizens of this country on the same level as their greedy wallets. Our “business schools” have been turning out unpatriotic greedy bastards for the past 50 years.
Interesting. I think there’s a lot of obfuscation going on. Ultimately, I think it all comes down to bankers/western capitalism and the petro-dollar vs Vladmir Putin and anyone else that threatens the petro dollar. Putin attacked the petro-dollar by attempting to trade oil for currency other than US dollars and a message needed to be sent to him courtesy of the bankers.
I absolutely disagree with the narrative that Saudi Arabia is manipulating this to kill fracking. The insane price of oil has been due to the belief that global demand will outpace supply before long. China and Europe are teetering and everyone is starting to realize that the China bubble is about to burst and with it, any worries about demand outstripping supply.
Yeah, that is another angle to it.
It’s probably for multiple reasons really, though I do know that prices WOULD be higher if the Saudis/OPEC wanted it to be.
I agree with you. I don’t believe the Saudi’s could do this on their own. It really is a supply/demand issue and the dearth of demand is being ignored.
Yea, I miss them too.
For years I got the throw my "the world is awash in oil" cliché in their faces, now they're too embarrassed to even post anything.
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