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Crude settles at $50.04 per barrel, lowest since April 2009
CNBC ^ | January 5,2014

Posted on 01/05/2015 4:51:29 PM PST by rdl6989

The selloff in global oil markets showed little signs of slowing in the new year, falling as much as 6 percent on Monday to their lowest since spring of 2009 as fears of a supply glut that vexed the market for the past six months deepened.

U.S crude closed down $2.65, or 5 percent, at $50.04 a barrel—its lowest settlement since April 2009. The contract fell further in extended trading.

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; Extended News; News/Current Events
KEYWORDS: oil; oilprices
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To: pallis

Diesel has come down a little, but nothing compared to gas.

http://www.cnbc.com/id/102306312


21 posted on 01/05/2015 5:49:50 PM PST by rdl6989
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To: rdl6989

Time to start stocking up.


22 posted on 01/05/2015 5:51:10 PM PST by 9thLife ("Life is a military endeavor..." -- Pope Francis)
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To: Antoninus II
What little job creation there has been in this crap economy has been energy sector related

How right you are.

23 posted on 01/05/2015 5:58:00 PM PST by Fightin Whitey
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To: rdl6989

Enjoy the short term prices. Once the Muslums drive out the highly-leveraged operators in America, the prices will go higher than they were before. You can count on it. That is their end game.


24 posted on 01/05/2015 6:09:16 PM PST by crusty old prospector
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To: RckyRaCoCo

It’s called supply and demand. Iraq producing higher than its good old days. USA producing heavily, Venezuela is producing all it can for current revenue since its going broke. Norway is a big producer, can’t cut or it can’t keep supporting its welfare system. And the Saudis capped it by not cutting production (which caused the rest of OPEC to follow suit).

We have an oversupply. It will probably last a while, but the bottom in price will should be reached in the next 3-4 months. Private producers will cut production as feasible, which will cut supply. That will lower the downward pressure and eventually the price may find a more stable period. Govts (most of the market) will keep right on pumping, slowing the cycle somewhat.

These cycles have happened quite a few times, it’s a good idea to study the history.

Large price changes in huge markets are always opportunities, no matter the current direction of the change.


25 posted on 01/05/2015 6:25:17 PM PST by SaxxonWoods (Life is good.)
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To: Antoninus II
You don’t read much, do you?

No, sorry... I suffer from dyslexia.

26 posted on 01/05/2015 7:20:09 PM PST by RckyRaCoCo (Shall Not Be Infringed)
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To: crusty old prospector
Once the Muslums drive out the highly-leveraged operators in America, the prices will go higher than they were before. You can count on it. That is their end game.

Saudi oil production is down in 2014. US production is up. The Russians continue to produce more oil than any other country.

Not sure what you think the Saudis are doing.

27 posted on 01/05/2015 7:25:53 PM PST by FreeReign
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To: SaxxonWoods
Govts (most of the market) will keep right on pumping, slowing the cycle somewhat.

That's a most interesting observation of a market distortion few consider. Some of these suppliers can't respond in a "rational" (market driven) manner. If anything, with a sustained price drop, they need to pump more, not less, to maintain revenue. Others want to maintain market share.

The Saudis probably could cut production further, especially with their huge cash reserves, but are more interested in sticking it to Iran (and may not mind dinging some marginally profitable producers elsewhere.) That said, they do seem to be putting on the brakes just a bit:

http://www.bloomberg.com/news/2015-01-06/saudis-raise-price-of-main-oil-grade-for-asian-buyers.html

28 posted on 01/06/2015 12:10:37 AM PST by Paul R. (Leftists desire to control everything; In the end they invariably control nothing worth a damn.)
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To: FreeReign

Agreed, although I believe that if you add in natural gas liquids, the U.S. is actually now #1? Or is that in dispute?

http://www.bloomberg.com/news/2014-07-04/u-s-seen-as-biggest-oil-producer-after-overtaking-saudi.html


29 posted on 01/06/2015 12:14:07 AM PST by Paul R. (Leftists desire to control everything; In the end they invariably control nothing worth a damn.)
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To: SaxxonWoods

I think few understand just how far reaching the oil and gas business is in the US. A 50% drop in crude prices hit’s millions of people all across the country. Remember we have 39 oil producing states.


30 posted on 01/06/2015 4:11:16 AM PST by Dusty Road (")
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To: SaxxonWoods

We and many like us will just continue what we’re doing, we drill and produce. This is a perfect time for those of us who are not over extended, we pick up leases others are dumping to conserve what little they have left. Every time this happens we get stronger.


31 posted on 01/06/2015 4:18:29 AM PST by Dusty Road (")
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To: FreeReign

They are not really doing anything but rhetoric. The Eagle Ford and Bakken did not change the supply and demand of the entire world market but $100 oil did.


32 posted on 01/06/2015 6:29:40 AM PST by crusty old prospector
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