Posted on 01/18/2016 6:01:07 AM PST by thackney
Producers of certain crudes from Mexico, Venezuela, Canada and Iraq are bracing for worse to come as Iran - now free of international sanctions - prepares to offload hefty supplies of heavy sour grades onto export markets.
Some cargoes of heavy Mexican crude are trading for less than $13 a barrel, and downside price momentum for hard-to-refine grades looks set to intensify....
This could act as an additional weight on benchmarks Brent and West Texas Intermediate (WTI) futures, which have slumped roughly 20 percent since the start of the year to prices under $29 a barrel.
..."The drastic fall in outright prices is wreaking havoc on heavy crudes which are typically sold at deep discounts to benchmark crudes," said analysts at JBC Energy.
In the Canadian town of Hardisty, Alberta, buyers can pick up a barrel of crude known as Western Canadian Select - one of North America's largest heavy crude oil streams - for less than $15, while producers need a price above $43 to make money.
(Excerpt) Read more at cnbc.com ...
Folks, this is all a viscous lie. Oil cannot be at $30 much less $10 because the world is nearly out of oil. I most definitely recall being told that by every MSM outlet and the whole of the Democrat party.
And unemployment is 5% too.
The $43 is too high.
The reason for the Iran deal was to kill the oil/gas industry. It was the only industry that was holding the US economy afloat. This is why baraq and his team was so hell bent to get the deal with Iran done.
Obama would rather help the imams in Iran to sell their oil for nukes than to see our oil and gas industries survive. If they go bankrupt, his wet dream of wind and solar energy subsidized by taxpayer dollars will be part of his disastrous legacy.
I don't know if that was intentional or not but it is funny.
hee hee. There is a solution, if our government is so worried about the price of oil/fuel. Put a ban on ethanol as fuel. Stop using food for oil and start using it for food. This will drive a little demand against the supply and lower food prices in the process. Alas, I foolishly and redundantly assume there is intellectual intelligence, intelligently, and wisely, working in the best interest of our country at the helm in America.
I think part of this Iranian deal is to contain Russia by cutting down their oil revenue...
It would seem that viscosity is the root of the problem
although plentiful, when there is a surplus of light oil the thick becomes less valuable to the point it is worthless
He's a FReeper. Clever manipulation of our language in whimsical quips MUST be given the benefit of the doubt. It's state law. I give it a "Hee Hee" as it came with an unmarked sarcasm tag to rule out the wannabees. That's top shelf stuff right there.
The office liberal still believes in peak oil. Sigh.
Why does this remind me of the “Dutch Tulip Bulb Market Bubble” which occurred in Holland during the early 1600s when speculation drove the value of tulip bulbs to extremes?
At the height of the market, the rarest tulip bulbs traded for as much as six times the average person’s annual salary.
Well, you had to know that sooner or later the world would run out of dinosaur remains (i.e., “fossil” fuel).
“The office liberal still believes in peak oil. Sigh.”
Unfortunately we have yet to see the “Peak Liberal” phenomenon manifest, but we are ever optimistic.
It's oil's turn!
It will certainly disrupt it. But kill is too strong a word. The assets (human and material) are not going to disappear. When prices rebound, the industry will also. This has been a boom/bust cycle for a long time.
There will be a lot of great deals on small cars if this pricing continues.
We are in one of the dark green areas. Saw $1.349 yesterday.
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