Posted on 02/28/2020 9:27:34 AM PST by bananaman22
Oil prices sank for a sixth consecutive day early on Friday and were on track for their biggest weekly drop in more than four years as the coronavirus outbreak continues to roil global equity and oil markets.
At 10:53 a.m. EST on Friday, WTI Crude was plunging by 5.92 percent at $44.30, and Brent Crude was down 4.58 percent at $49.36, after falling briefly below $50 earlier today.
The sell-off on the oil market has continued for more than a week as the coronavirus spread quickly outside China—to Europe, the Middle East, and as of recently—Africa.
(Excerpt) Read more at oilprice.com ...
Oilprice.com is staffed by alarmists. They scream that we are either at peak oil or the price is too low.
Along with everything else in the market.
Something weird is up locally. Three weeks ago Kroger was $1.93 a gallon, this afternoon $2.29.
Yep, and of course the low gas prices will give states the incentive to raise taxes on gasoline.
Even the stations in California are experiencing drops in pricing lately.
Oddly this is okay.
The USA sits on vast reserves of shale oil and even greater reserves of natural gas. Some years back the break even for shale oil was about 100 dollars a barrel and the price at that time for oil was well over this. We found a lot of oil and the price declined. Many companies went out of business as in bankrupt. Those that remained became leaner and meaner and fracking continued.
This is how capitalism works. It delivers the public oil and natural gas at the cheapest price that economics dictates.
All that shale oil is in the ground. It will be extracted based on economics.
Capitalism works.
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