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 ...
You’re higher because of taxes and logistics issues. So, no, your higher prices won’t help petro jobs.
Same in South Louisiana. People lose
jobs when oil drops.
There needs to be a solution.
Your state taxes and county taxes and city taxes on fuel sales.
Liberal states to increase gas tax due to lower gas prices, can’t be losing all that revenue.
It was just under $2 in SW Ohio until the stations all jacked up the price about 40 cents. But the price increase didn’t hold and is down to $2.05. I have a dollar off at Kroger so I want the gallons to move faster than the dollars on my next fill up.
Yep, there and Romeoville.
I thought 80% of the State of Texas was Flatonia.
I’m in a dem state and paid $2.35 for mid grade today.
Make that $3.25! I must have been dreaming...
1.99 here in Georgia today. come on down!
1.99 here in Georgia today. come on down!
First, there are fewer stronger dollars flowing into the country because the world isn't buying oil. Second, our exports become more expensive and US exporters suffer.
$2.19 here for a month.
It’s good for American consumers. Inexpensive oil in March makes me warm all over.
>>>Cheap energy means cheap everything. In the long run it’s fantastic for the economy.
Yes but it can cause some serious short-term pain. Manufacturing went into recession when oil prices dropped in 2014- 2016. Less need for machinery and oil country tubular goods.
https://fred.stlouisfed.org/series/INDPRO#
US GDP growth rate also slowed considerably during that period.
https://fred.stlouisfed.org/series/GDPC1#0
not for long ...
prices vary by state, mostly due to taxes ....
Whatever the price is now where you are, it will be 25 cents lower in a matter of days ...
So does my Ram 4500 6.7L 11’ dump truck.
NBC math?
“”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.””.............................
This has got to be the stupidest comment I’ve ever read on FreeRepublic.
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