US crude dips below $31, hits fresh 12-year low

CNBC ^ | 01/11/2016 | Staff

[Dr. Sivana]

Because those who will pay for it will.................

That doesn't really answer the question as to why the cost went up. If I would change from Shell to Chevron for a five cent difference, competition should drive the actual asking price to cost + profit. As the profit motive hasn't changed, what has made the cost go up so much greater than the cost of inflation (even allowing that real inflation is greater than the phony numbers we are given).

[dynoman]

OPEC - that is obvious, they said they were deliberately not cutting production.

[dynoman]

OPEC wanted to kill shale oil plays. And they have.

[TexasCajun]

Not just OPEC, I found this chart on US producers, Oct. 2105

I also saw a number around 60,000 US workers affected, mostly downstream drilling, equipment mfg & service companies.

[thackney]

US oil production numbers at:

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFPUS2&f=M

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WCRFPUS2&f=4

[Sam Gamgee]

So if China is bringing oil down why is it not doing the same to the Dow? We now officially have the entire world in recession.