Posted on 03/08/2020 5:03:21 PM PDT by Hojczyk
Oil prices plunged 30% in early trading after OPEC’s failure to strike a deal with its allies regarding production cuts caused Saudi Arabia to slash its prices as it reportedly gets set to ramp up production, leading to fears of an all-out price war.
International benchmark Brent crude futures plummeted 30% to $32.05 per barrel. U.S. West Texas Intermediate crude dropped 27% to $30 per barrel, its lowest level since Feb. 22, 2016.
“This has turned into a scorched Earth approach by Saudi Arabia, in particular, to deal with the problem of chronic overproduction,” Again Capital’s John Kilduff said. “The Saudis are the lowest cost producer by far. There is a reckoning ahead for all other producers, especially those companies operating in the U.S shale patch.”
After the initial drop the losses were pared somewhat, with each contract trading down slightly more than 21%.
On Saturday, Saudi Arabia announced massive discounts to its official selling prices for April, and the nation is reportedly preparing to increase its production above the 10 million barrel per day mark, according to a Reuters report. The kingdom currently pumps 9.7 million barrels per day, but has the capacity to ramp up to 12.5 million barrels per day.
(Excerpt) Read more at cnbc.com ...
Stock Futures down 1,1000
Bring me $2/gallon gas and I’ll believe it.
My neighbor brought his new Ford diesel dually pickup home yesterday...49 gallon tank...MAGA!!
We used to say lower oil prices good for America. Do we still say that?
We are oil exporters now, after all.
I bought gas at $1.95/gal last Tuesday.
It’s cheaper now.
Let’s go back to 74’. OPEC. Gas lines. Nixon. What would Trump have done.
It’s under $2 in parts of Colorado...
Well, there goes the recovery
It’s under $2 in parts of northern Colorado... $1.86 to $1.99
It’s 1.91 here in Rockwall Texas today. Sorry for you if you live in a dem state and are paying f 4$
I remember being in Detroit on a Sunday and trying to get back to Cleveland for work on Monday. All the stations up there were out or closed. Luckily the Ohio Turnpike stations had gas.
We’ve had sub-$2/gal gas here in Texas for several weeks. Want to see a scan of my receipt?
Good time to top off the Strategic Petroleum Reserve.
My Ram 3500 long-bed dually 6.7 liter pickup and 42ft 5th wheel thank you.
We used to say lower oil prices good for America. Do we still say that?
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It’s not at all simple anymore when we are a producer. The fracking industry is out of business with these prices.
Hopefully a short term issue. I can live with $3.15 gas in So. Kal. if it keeps tens of thousands of domestic oil / gas workers employed. Don’t underestimate the American publics ignorance of the Presidents power to head off this downward Corona Virus spiral.
I believe it. $2.04 in Jax, FL around town this weekend.
Last night in San Antonio 1.87 at QT, 1.83 at Walmart.
$2.14 in Maryland
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