Posted on 01/11/2016 11:42:17 PM PST by Citizen Zed
The strengthening U.S. dollar could send oil plunging to $20 per barrel.
That's the view of analysts at Morgan Stanley. In a report published Monday, they say a 5% increase in the value of the dollar against a basket of currencies could push oil down by between 10% and 25% -- which would mean prices falling by as much as $8 per barrel.
Crude oil prices are already trading at around $31, near their lowest levels in 12 years. Prices tumbled over 6% on Monday, and are 16% down so far this year.
Oil has dropped more than 65% since a peak 18 months ago. Analysts have attributed the slump to a global supply glut brought about by slowing demand and high production.
But the report by Morgan Stanley (MS) says the dollar's gains are also to blame. Global oversupply may have pushed oil below $60 per dollar, but the recent falls are due to sharp currency moves.
(Excerpt) Read more at money.cnn.com ...
Think of the dollar as U.S. government gift certificates. ;-)
20$ oil collapses Russia and the US fracking industry.
Neither is a good thing! :-(
Since both are bad outcomes, Zero will love it.
What will a man do to protect his family?
What will a leader do to protect his people?
It's some sort of progressive voodoo or devil worship IMO... will lead to disaster.
Quite to the contrary.
While the world is in the crapper, all the other places are getting hit harder than the US. The US is still the greatest place as it can generate ideas, knowledge and inventions.
No on else has the large infrastructure that American freedom has generated.
It is still the greatest place in spite of Obama’s intended destructive policies which have only whiplashed developing economies.
A competent US government would have increased Strategic Petroleum Reserve storage capacity to take advantage of the lower prices. To bad political correctness has taken over this kind of planning as well as others like as keystone.
All of that newly discovered fracking crude in the ground (like North Dakota) is the new petroleum reserve. The U.S. is now self sufficient when if comes to petroleum. The wells may be shut down now that the price is low, but it won’t stay that way forever, and the discovered oil will still be there when needed.
Why are you a fan of Iran, Venezuela, & Russia?
wel good, we might finally get below $2.30 per gallon og gas if it drops that low- (Missouri paying $167 per gallon- We’re paying $2.30 per gallon-
A fine point. It’s nice to have money(oil) in the bank for that rainy day when we get tired of those bastards in the sandbox.
Obama by crashing oil prices will put hundreds of thousands of oil field workers out of work and by increasing the dollar will devestated our export of all US made products.
To the uneducated Democrat, low oil prices and an increase in the dollar’s value may seen good, but they don’t understand their true consequences.
Whether it be Trump or Cruz, there will need to attrack Hillary on her role of collapsing oil prices and making the dollar too high in value.
“How did we convince the world that the dollar is strong?”
The world sucks more than we do, it’s relative...
Putin can kiss his war machine goodbye... and his power.
Apologies if I create a hijack of the thread.
Dollar is up past 76 to the ruble. Think of all the dollars Putin threw away buying rubles. Before the economic crisis in Russia it was trading at about 45 but then went to about 85. Putin started intervening with buying rubles and recently got it down to about 60. Now the rate is 76+ with oil possibly going down to 20.
How much motor oil do you use?
The Strategic Petroleum Reserve was designed for use in the time of war to fuel ships, planes, tanks, etc. If we opened the valves to the civilian population, it would be empty in about a week. As far as increasing the reserve. No need. Obama has gutted our military.
Buy high, sell low. What could possibly go wrong?
It isn't their money.
Local (around Biloxi, MS) is averaging about $1.68 and I saw a station with $1.54 yesterday. Pretty soon I’ll be paying under $2.00 for premium....
We are not close to that. We are importing over 9 million barrels per day of petroleum.
4-Week Avg U.S. Imports of Crude Oil and Petroleum Products
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WTTIMUS2&f=4
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