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U.S. Oil Prices Drop Below $32 a Barrel
wsj ^ | 1-11-2016 | NICOLE FRIEDMAN

Posted on 01/11/2016 8:49:32 AM PST by Citizen Zed

U.S. oil prices dropped below $32 a barrel Monday for the first time since 2003 on a stronger dollar and continued concerns about Chinese demand.

Prices slumped to 12-year lows this month as the global glut of crude that has weighed on oil prices for more than a year continues to persist.

(Excerpt) Read more at wsj.com ...


TOPICS: Chit/Chat
KEYWORDS: energy; oil; oilprice; peakoil
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To: pepsionice

At $32 a barrel, the Strategic Petroleum Reserve should be getting refilled right up to capacity. Do we have any word on that?

If nothing else, a widely-based purchase of crude by the Federal Government right now would act as a cushion and aid in balancing the commercial reserves.

There is no profit anywhere along the line so long as prices remain below about $50/barrel. At that price, supply/demand would come pretty close to balance, the oil producers are making a profit, and the supply would be ample.

But the oil business being what it is, the producers would again produce a glut, and suddenly face $30-$35 oil again.


21 posted on 01/11/2016 9:32:59 AM PST by alloysteel (If I considered the consequences of my actions, I would rarely do anything.)
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To: thackney

Small city in Nevada - $2.23 for 87 octane.

Anyone notice how the spread, which used to be 10/10/10 for each grade, has now climbed, in my area anyway, to 10/10/16?


22 posted on 01/11/2016 9:34:38 AM PST by Oatka (Beware of an old man in a profession where men usually die young.)
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To: alloysteel
At $32 a barrel, the Strategic Petroleum Reserve should be getting refilled right up to capacity. Do we have any word on that?

Nope.

Instead Congress and the President decided to sell more oil out of the the SPR.

http://boereport.com/2015/12/24/spr-crude-sales-and-projections/

23 posted on 01/11/2016 9:36:50 AM PST by thackney (life is fragile, handle with prayer)
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To: Citizen Zed

No benefit from this to those of us in CA...;(

Thanks in large part to the Global Warming Solutions Act the libs foisted on us and that Arnold signed.


24 posted on 01/11/2016 9:37:00 AM PST by SZonian (Throwing our allegiances to political parties in the long run gave away our liberty.)
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To: Obadiah

I think the market is unloading everything right now.

Probably will begin to allocate for a new reality, if Trump wins in Iowa.

Trump will be (strongly) repatriating a lot of American manufacturing.

Big time. However we have as a country sold our entire manufacturing base to China. All our manufacturing base. Pretty much.

I think we are in the calm before a (huge) re-allocation.

Just my .02.

Probably another month, then all heck will break out to the upside for a lot of things.

However the bunch of companies based on buying ever more Chinese manufacturing good may be slammed. Bigtime.

Maybe. But that is how I interpret things right now.


25 posted on 01/11/2016 9:37:38 AM PST by Cringing Negativism Network
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To: Cringing Negativism Network

I think gold is starting a (large) bull run, right from here.

That is just a guess though.


26 posted on 01/11/2016 9:40:32 AM PST by Cringing Negativism Network
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To: pepsionice
but is there any profit at below $32, or is pretty covering pulling out of the ground and transporting it?

Depends on where you are getting it and where it needs to go.

27 posted on 01/11/2016 9:41:31 AM PST by PAR35
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To: Oatka

Definitely, this is where they are trying to make up their profits. For example, in my area 87 octane is $1.79 while 93 octane is $2.51. No reason premium should be 40% higher ($0.72)than the cost of regular.


28 posted on 01/11/2016 9:44:26 AM PST by Obadiah (Jeb! Because America needs more cowbell.)
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To: thackney

We used to have cheap gas around here. Now it is running 10 to 12 cents a gallon more than it is about 8 miles away in a more upscale area. Not quite enough to make it worth my while for the extra drive.


29 posted on 01/11/2016 9:44:42 AM PST by PAR35
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To: PAR35

My +100 mile daily commute give me ample choices to keep up with lower priced gas among the area.

It also give me frequent need to fill the F250.


30 posted on 01/11/2016 9:46:02 AM PST by thackney (life is fragile, handle with prayer)
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To: Citizen Zed
I have two kids in their mid 20s, both are working. I've been on them to put their spare cash into an energy mutual fund. They have plenty of time to wait for the price of oil to rebound.

And we all know it will rebound.

31 posted on 01/11/2016 9:46:41 AM PST by Night Hides Not (Remember the Alamo! Remember Goliad! Remember Mississippi! My vote is going to Cruz.)
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To: Night Hides Not

I agree with you.

However it hasn’t happened yet. That is for darned sure.


32 posted on 01/11/2016 9:52:36 AM PST by Cringing Negativism Network
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To: pepsionice

In the middle east, yes, in the United States, no.


33 posted on 01/11/2016 10:16:06 AM PST by TexasGunLover ("Either you're with us or you're with the terrorists."-- President George W. Bush)
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