I don't remember that happening 6 years ago.
Posted on 11/30/2014 6:03:03 PM PST by blam
Myles Udland
November 30, 2014
More than 50% lower.
That is how far Canadian billionaire Murray Edwards, chairman of Canadian Natural Resource, thinks oil prices can fall from here.
Speaking with Canadian business publication Financial Post, Edwards said, "Prices could spike down to $30, $40. It got down to $35 in 2008, for a very short period of time."
Edwards told Financial Post's Claudia Cattaneo that, "On a given day you can have market fluctuations where prices fluctuate far more than the underlying economic value of the unit," adding that if oil falls to $30 or $40 a barrel he doesn't expect it would stay that low.
(snip)
(Excerpt) Read more at businessinsider.com ...
We have been led to believe that oil and gas prices are set on the basis of demand & futures trading.
As I see it, this is one of 2 things: An epitaph on confidence in the world economy (makes you wonder what traders know that we don’t) or a ‘grand manipulation’.
On the latter, the big question is who has the $$ to manipulate world markets and who benefits from a temporary oil crash?
Regardless, there is one thing certain: An ‘event or events’ will occur that will cause the price of oil to skyrocket in response.
It’s so nice to live in a world governed & manipulated by people with such power... /s
In the meantime, those with simpler minds will all rejoice at the lower prices at the pump, oblivious to what it all means, geo-politically, economically and to world stability.
Is that available to the little guy or only if you buy a million gallons at once?
Presumably when crude oil goes down the corresponding taxes go down by a similar amount. 63%+13%=76%.
“The Iranians and the Venezuelans riot since their governments cannot sustain their spending levels at $40 to $50 a barrel. I am not sure it drops to $30.00 but possible.
$40 to $50 seems more likely.”
Pleeeze, make it happen by Xmas! Both country’s populations deserve a break from their despotic governments.
Agreed!
Most gasoline taxes are fixed per gallon. Some states have some portion that is percentage based.
Soooo sad.
Just wait and see.
I don't remember that happening 6 years ago.
Yes, but each country has a larger population and in the case of Venezuela a lot more socialism during the past six years and more promises to the poor.
Can anyone pontificate on what happens if this happens?
LOL.
When this last happened at the height of the cold war in 1985, it followed a visit by then Vice President George H. W. Bush to Saudi Arabia. Bush convinced the Saudi royal family it was in their best interest to reduce the price of crude oil to regain market share. As a beneficial side effect, Russia would lose a major source of foreign exchange. This followed a major investment by Russia in radar capability, which was largely negated by the publicity of the US then recently developed stealth technology. With reduced foreign exchange, Russia was unable to replicate the stealth technology and the Soviet Union failed. Unfortunately, the economies of the oil producing states, Texas among the most extreme example, were crippled.
This time around, Obama has visited Saudi Arabia twice this year, Bidden has called the Saudi royal family once and the UAE twice. This time it appears the primary objective is to cripple the oil producing states economies, principally Texas, which has been a thorn in Obama’s side. The beneficial side effects of reducing Russia’s foreign exchange, increasing Saudi market share, and reducing the foreign exchange of Iran, along with the positive effect on the economies of states more aligned with Obama, are perhaps just that, side effects.
By the way, crude prices dropped from about $32 in 1985 to a low of $8 in 1986. That is a 75% drop. Prices did not return to $32 until 2003.
Venezuela’s total government spending is down in the past 6 years, as a percentage of GDP.
http://www.heritage.org/index/visualize?countries=venezuela&type=4
Time for me to do more research before I post.
Google it if you want. I don’t think Southwest bought actual gallons. I think they bought options on oil when it was at a low price, and when it went up, they didn’t care, because of the profits on the options. It allowed them to keep ticket prices down when oil prices went up. If they bought actual delivery of oil, even better. Either way, it was a textbook example of hedging.
I know. I lived in Houston from 1975 till 1995.
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