Posted on 01/17/2016 9:38:37 PM PST by ScottWalkerForPresident2016
Oil prices were sharply lower in early Asian trade, extending a brutal sell-off fueled by fears of a glut from Iran, after international sanctions against the country were lifted at the weekend.
U.S. WTI light sweet crude oil prices were recently trading 1.5 percent lower at $28.99 a barrel, after falling 3.6 percent to hit the session's low of $28.36 barrel, while European Brent crude was last 1.6 percent down at $28.47 a barrel after falling 4.4 percent to $27.67 a barrel.
Both grades were moving in the range of prices not seen since late 2003 after falling about 6 percent on Friday in the U.S. session.
Iran, which is an OPEC member, is ready to increase its crude oil exports by half a million barrels a day, Reuters reported on Sunday, citing statements from the country's deputy oil minister.
(Excerpt) Read more at cnbc.com ...
More chaos in the Middle East.
More ‘refugees.’
More dependence by Americans on cheap oil as American businesses go bankrupt along the Gulf Coast, South Dakota...
The markets in the US open Tuesday.
My gut is, it’s going to be ugly.
It already has been ugly.
This will impact the election.
Go Trump.
I’ve seen several Brit business analysts talk over the issue in the past week. They say this Saudi strategy....to bankrupt frackers and hurt US/Russia oil production....will only briefly work, but it will permanently damage Saudi Arabia. They project the cheap prices for a minimum of two years, unless some type of chaotic event occurs in Saudi Arabia. I noticed this morning that Iran will get a $100 billion back this week from formerly frozen assets.
The curious thing that I see...even if you hurt frackers momentarily....they’d simply go back to work the minute oil hit $50 a barrel. There’s no permanent way to take them down, and it’s plain stupid to think there is.
What does your head tell you? Mine tells me that while falling oil prices due to falling world demand has been taken as a sign of a world slump and has been bad for stock prices. I would guess that a drop in oil prices because of an increase in supply from Iran might well be seen as positive by the markets participants and be good for stock market prices.
“More chaos in the Middle East.”
There was a time not too long ago when chaos in the Middle East caused high oil prices.
Yes, I to am wondering how the Iranian oil outlook now will affect our stock market. Especially with the nuke ‘deal’ now completed and Iran set to get that 150 billion within a few days. They are flush with money and they’re going to have all their refineries updated with all the latest technology. More glut on the oil market coming.
Hmmm. Maybe the glut, will be in every other standard market. The related- unrelated.
Just maybe.
Hecky Durn.
SO GOOD to see you here, posting again!
Yes, I’m back and thank you friend. Just watching the oil market especially after the horrendous ‘deal’ having just been completed. :(
It may only be $29. But that’s $29 Iran didn’t have last week. Thanks 0bama for helping Iran have money to finance more terrorism.
No telling how oil and stocks will do this morning and this week?
I think you meant North Dakota (where the oil is), unless you meant the bars in Deadwood...
I hear that. I’m sure that Obama, Kerry, Jarrett, Abidin and the Senate democrats are all smiles this morning.
Big Rock Candy Mountains. Fer sur...
Saudi Arabia has lost the ability to set the price of oil on the high side. The ceiling is set by the American producers. Saudi Arabia's strategy is to keep the price low enough to keep out other producers, while diversifying their economy away from oil. This isn't a temporary strategy for them. They beilieve the market has fundamentally changed.
I just remembered that this is a holiday today, so no N Y stock market today.
Yisah.
Good.
No tide.
All right!
I’m very happy you have returned!
Time for my sleep and I’ll look for you a little later.
MAYBE today will be a good day for me to buy some gasoline!
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