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Oil plummets 30% as OPEC deal failure sparks price war
CNBC ^ | March 8,2020 | Pippa Stevens

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 ...


TOPICS: Business/Economy; Politics/Elections
KEYWORDS: 1moretime; covid19stockmarket; energy; hydrocarbons; maga; oil; oilprice; opec; stockmarket
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To: DAC21

You’re higher because of taxes and logistics issues. So, no, your higher prices won’t help petro jobs.


61 posted on 03/08/2020 5:42:41 PM PDT by FreedomNotSafety
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To: DAC21

Same in South Louisiana. People lose
jobs when oil drops.
There needs to be a solution.


62 posted on 03/08/2020 5:43:00 PM PDT by DeplorableGirl
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To: Revel

Your state taxes and county taxes and city taxes on fuel sales.


63 posted on 03/08/2020 5:47:08 PM PDT by entropy12 (You are either for free enterprise or want gov't to interfere with corporate issues.)
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To: Hojczyk

Liberal states to increase gas tax due to lower gas prices, can’t be losing all that revenue.


64 posted on 03/08/2020 5:47:45 PM PDT by SkyDancer ( ~ Just Consider Me A Random Fact Generator ~ Eat Sleep Fly Repeat ~)
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To: DIRTYSECRET

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.


65 posted on 03/08/2020 5:54:11 PM PDT by KarlInOhio (Democrats couldn't count a Siskel and Ebert vote, but they'll still try with those dead Chicagoans.)
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To: nascarnation

Yep, there and Romeoville.


66 posted on 03/08/2020 5:57:19 PM PDT by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: DAC21

I thought 80% of the State of Texas was Flatonia.


67 posted on 03/08/2020 5:57:38 PM PDT by Gasshog (Democrats have done the impossible! They united the GOP behind President Trump.)
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To: BereanBrain

I’m in a dem state and paid $2.35 for mid grade today.


68 posted on 03/08/2020 5:59:05 PM PDT by SoCal Pubbie
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To: BereanBrain

Make that $3.25! I must have been dreaming...


69 posted on 03/08/2020 6:00:58 PM PDT by SoCal Pubbie
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To: DIRTYSECRET

1.99 here in Georgia today. come on down!


70 posted on 03/08/2020 6:02:23 PM PDT by Midwesterner53
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To: DIRTYSECRET

1.99 here in Georgia today. come on down!


71 posted on 03/08/2020 6:02:23 PM PDT by Midwesterner53
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To: JPJones
Exporting oil just means that more (stronger!) dollars are flowing into the country.

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.

72 posted on 03/08/2020 6:06:36 PM PDT by palmer (Democracy Dies Six Ways to Sunday)
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To: DIRTYSECRET

$2.19 here for a month.


73 posted on 03/08/2020 6:13:16 PM PDT by wizwor
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To: samtheman

It’s good for American consumers. Inexpensive oil in March makes me warm all over.


74 posted on 03/08/2020 6:14:13 PM PDT by wizwor
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To: Mr Ramsbotham

>>>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


75 posted on 03/08/2020 6:14:42 PM PDT by oincobx
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To: wizwor
$2.19 here

not for long ...

76 posted on 03/08/2020 6:15:42 PM PDT by bankwalker (Immigration without assimilation is an invasion.)
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To: DIRTYSECRET
Bring me $2/gallon gas and I’ll believe it.

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 ...

77 posted on 03/08/2020 6:24:40 PM PDT by bankwalker (Immigration without assimilation is an invasion.)
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To: Bitman

So does my Ram 4500 6.7L 11’ dump truck.


78 posted on 03/08/2020 6:31:24 PM PDT by CapnJack
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To: Hojczyk

NBC math?


79 posted on 03/08/2020 6:37:00 PM PDT by mad_as_he$$
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To: wildcard_redneck

“”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.


80 posted on 03/08/2020 6:38:55 PM PDT by Dusty Road (")
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