If you could cut your production by 6.7%, and then raise your price 100% ($50 to $100 per barrel), wouldn't that make more sense?
Instead of worrying about new USA drillers, wouldn't it make more sense to continuously invest in cost reducing technology for your own fields, and keep the price as high as possible?
Game of chicken, mostly against Iran and Russia.
We’re further down the line, but we’re there.
So what is the truth?
disinformation wins every time.
All I know is that I wish I had a big underground tank as I would be filling it up at today’s prices. Hopefully our government is taking advantage of the current glut in order to top off strategic reserves.
I believe 0bama cut a deal with his Arab brothers to crash oil prices to harm Putin, while simultaneously killing our domestic oil producers in the US(which he hates for other reasons).
If so, it’s probably the most effective thing he has ever done as president. (sadly) lol
It’s my opinion that we mere mortals thinking we can encapsulate the many forces at work in this complex situation in one or two sentences is.....silly.
If you wanted to tell me that that speculating about what’s behind it is fun, like a party game, I’m right there with ya. It’s fun to trade oil stocks, too. Futures, too, even though they can rip your head off.
But I find it kind of presumptuous to think we know or can know the dynamics behind this. If KSA found these results detestable and they hated the idea of losing billions of USDs, aren’t there some big round wheels they could turn clockwise and fix the problem in 10 minutes? And they could buy the crap out of oil futures too, for the runup in prices.
I *do* think that the drop in oil price is an absolutely remarkable and fascinating story and certainly one of the biggest stories of 2014.
bmp
If we had a government with some balls they would place a tariff on oil priced below the market average.OPEC is trying to destroy our oil industry and we as Americans shouldn’t allow that for economic as well as national security reasons.
Peak Oil™ bump.
Prices were low before the democrats took over.
High price of gasoline is not normal.
Are you really looking for rational thinking from that part of the world?
One of these days these guys will no longer be able to buy solid gold Rolls Royces or afford to poop in 24K gold toilets while the rest of the turd world is looking for some meat on a chicken’s foot in the dump.
Let them sell their national treasure for pennies on the dollar.
Meantime, the guys with oil jobs here need to find jobs someplace else, and hopefully they banked the big bucks while they were taking in that kind of pay. Move and adapt.
It will be good to get the entire global economy to where no one needs to buy oil from the middle east, and the dune runners can get back to herding goats and picking dates.
Look at Venezuela to see what happens to an economy that is no longer profitable from their ONLY export. One day these camel jockeys will have to try eating crude oil sammiches.