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 ...
Cashed in my $1.00 off at Kroger here in SE Texas two days ago and paid $0.95 a gallon. Filled up my SUV and two 5 gallon gas cans. :-).
I have one of those! But diesel is still about 3.50 a gallon here in commifornia.
Windmills and solar-panels hit hardest.
I hope that everyone on this forum understands that all of the hand m-wringing about oil prices being too low is just the establishment fear that they are not extracting enough money from the American middle class.
To hell with them, I hope Welle goes down to 20 goddamn dollars a barrel.
Geez, where do you live? It’s already here. Gas has been plummeting lately.
TRUMPS FAULT!!!
oh wait,...
Neighbor upsized his 5th wheel trailer to match.
The whole rig just fits between the garage door and the street.
OPEC not reaching an agreement will not hurt a recovery. MSM pumping every virus flare up will.
Been bouncing around and under$2 here in Missouri for two months now, average looks like about $1.96 yesterday.
Filled my 80 gal motorhome gas tank up after the holidays, $1.88 then....
All is temporary.
Not that I drive much anymore, but sure would be nice to see it hit ≤$2
Then the domestic fracking business Collapses and we are at the mercy of the saudis again.
Then the domestic fracking business Collapses and we are at the mercy of the saudis again.
“ We used to say lower oil prices good for America. Do we still say that?
Except in Texas and Oklahoma...
Unless the equipment is scrapped and the workers brainwashed, doesn’t the capability still exist, albeit with some lead time to restart?
OMG the prices in CA. are still at about 3.40 and THAT is pretty low!! Damn environmentalists!!!
Our former Republican governors in PA and New Jersey left us parting gifts of huge gas taxes
“We used to say lower oil prices good for America. Do we still say that?
We are oil exporters now, after all.”
Yes!
Lower oil prices just mean the dollar is getting stronger.
Exporting oil just means that more (stronger!) dollars are flowing into the country.
It’s a total win.
But feel better knowing you have state Cap N Trade protecting the earth.
Why not drill, pump and store in the strategic petroleum reserve? Wonder when the last time that was topped off?
I’m aware that going below a certain $ per barrel is a problem...
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