World oil prices falling

Herald Sun ^ | 28 December 2005

[Aussie Dasher]

WORLD oil prices extended losses today on expectations of warmer weather in the United States, the world's biggest consumer of energy, analysts said.

New York's main contract, light sweet crude for delivery in February, dropped US35c to $US57.81 per barrel in electronic trading.

In London, the price of Brent North Sea crude for February delivery fell US28c to $US56.01 per barrel.

"Crude futures remained under pressure from the mild US weather lowering demand for heating oil," analysts at the Sucden brokerage firm said.

Prices were weighed down also by crude output returning to normal in Nigeria after a pipeline attack in the African energy producer last week, they added.

Temperatures in the US northeast region, the world's largest consumer of heating fuel, were expected to rise further above normal levels by the end of the week, according to weather forecaster Meteorlogix.

[Aussie Dasher]

At this very minute, battalions of oil execs and their spin doctors are working on "reasons" as to why prices will not fall at the pump...

[Just mythoughts]

Wait a minute, if there is less usage then the earth should respond by cooling down. Something is not adding up here.

[ConsentofGoverned]

"At this very minute, battalions of oil execs and their spin doctors are working on "reasons" as to why prices will not fall at the pump..."
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>...........
simple minds see simple answers..perhaps you could concern yourself with finding out how much a barrel of oil costs to extract, transport and refine to the products we all use,
If prices fall - high cost wells and systems (tar sands) shut down and guess what prices rise as supply dries up.
Oil co's are not in the business of making sure you can afford the product- it is your job to earn an income that supports your use of oil. Oil products sold now must be replaced with ever higher cost oil - stop the economy (and therefore the demand for oil) and you will get very cheap gas/oil but you may not have a car or a home to put it in.

[reformedliberal]

I took a look at the averages for January after seeing that the forecast for my area for New Year's Day is 43. The recorded high for that day is 44, set in 1934. How many SUVs were on how many roads back then?

It is a cycle.

(Yes, I know you were being sarcastic)

[Semper Paratus]

I just finished reading another thread that said this is the coldest December in over 100 years but that this is what to expect with Global Warming.

This is all making my hair hurt!

[AndrewB]

We're Doooooomed....

[cynicom]

Capitalists here will tell you that it is healthy "supply and demand" at work.

[Aussie Dasher]

I'm all in favour of capitalism, but can't help but being more than a little cynical...

[eeriegeno]

simple minds see simple answers..perhaps you could concern yourself with finding out how much a barrel of oil costs to extract, transport and refine to the products we all use, If prices fall - high cost wells and systems (tar sands) shut down and guess what prices rise as supply dries up. Oil co's are not in the business of making sure you can afford the product- it is your job to earn an income that supports your use of oil. Oil products sold now must be replaced with ever higher cost oil - stop the economy (and therefore the demand for oil) and you will get very cheap gas/oil but you may not have a car or a home to put it in.

Well, I must have a simple mind too since I believe that the producers and speculators are pumping prices more than the crude that they sell! If the crude market is such a 'free market enterprise' explain how Reuters can report that "OPEC meets and decides that crude prices will remain above $50USD throughout 2006".

BTW, how much does it cost to extract, transport and refine crude? And could you list which 'high cost wells' and tar sands have been opened and closed as prices went up and down?

[cynicom]

My nic...Cynical old man...Very olde

[Ramcat]

If the crude market is such a 'free market enterprise' explain how Reuters can report that "OPEC meets and decides that crude prices will remain above $50USD throughout 2006".

Count me simple as well.

With the Imams, tin horn dictators, terrorists, and environazis controlling supply it's like playing in a poker game where the house is dealing off the bottom of a marked deck and they let you win every tenth hand (when the weather is nice).

[ConsentofGoverned]

"BTW, how much does it cost to extract, transport and refine crude? And could you list which 'high cost wells' and tar sands have been opened and closed as prices went up and down?"
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>.............
You can find the answers with very little work via the net but I assume you are interested so heres a little taste.
Exxon made less than 11% profit on it's oil sales last qtr.
look at profits at google or apple comp if you want price gouging.
MRO reported in last 10Q cost of lifting one barrel of oil was $17 vs less than $15 last year. Saudi oil is cheapest with cost of lifting less than $5-but it is poor quality oil high in sulfur. once produced oil must be transported to refineries so that cost is dept on how far the oil is from the refinery. AS for high cost wells / producers: SUNCOR a tar sands co in Canada estimates they break even if a barrel of oil costs $30 (they must heat oil sands with nat gas to extract the oil) ..Recent deep water wells in GOM (gulf of mexico) have been as much as $100 million/well - at 10% profit how much oil do they have to find and extract?

[cynicom]

You are in for it now. The "supply and demand" billionaire boys here on FR will be along shortly to whack you with their bankbook.

[rightinthemiddle]

It's all a matter of supply and demand.

(made your day)

[cynicom]

Yep

[rightinthemiddle]

;-)

[cynicom]

I was 16 before I found out dumbbell was not my name. My Father had a reason for calling me that, (thats what he said).

[rightinthemiddle]

Oh, how I wish I could have just been called "Dumbell."

[cynicom]

I am doing two things, trying to help out Dasher by giving them cheap pings, using a little humor, am failure at both.

I interpret your last with a sad note.

[rightinthemiddle]

Water under the olde bridge. Growing up is something that should be done just once, and done well.

Besides, I'm an evil capitalist!