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Gas Prices Below $3, because of ISIS

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DesiPower said:
Winter-is-Coming-Night-Walker.jpg
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Yep. Summer travel season is over. I'd expect a small price bump for Thanksgiving, though, because... well... gas station owners on the highway are greedy bastards. No good way to sugar coat that one.
 
z1ggy said:
Why would the president give two dicks about what the price of gas is?
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This. I am fairly certain Obama isn't the one swiping his card at the gas station when his motorcade needs filling up. Why would he give a shit about the price of gas; he ain't buying it.
 
JEDI said:
isis is undercutting the OPEC pricks.
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The fracturing of the cartel is what's driving prices down.


The idea that ISIS is driving down prices by competition is like thinking that someone selling two 5 gallon gas cans for two bucks cheaper by a corner gas station will force the owners to drop prices. No. ISIS does not control a significant portion of the market and in any case they want to make, not lose, money.
 
I feel like it was lower during the Great Recession we just had. But even then it didn't drop low enough for my liking

Although i will probably never again in my life fill up my tank with just a $20 bill again...
 
Why does OPEC even matter anymore when it comes to oil prices.

When OPEC raises prices, does that mean BP has to pay the Gulf of Mexico or the Oil Sands more for the oil they extract out? ... No.

If BP can extract oil from the gulf for $50-70/ barrel, then they should have a competitive advantage selling gas cheaper than other companies. Why don't we see gas companies with better supply chains dominating others?
 
Raizinman said:
I can't remember seeing gas prices at $2.97. But it seems the rise and fall of gas prices can be associated with events in the Middle East. Are the Arab countries thanking us for bombing ISIS? Is there some secret deal that the president made? Were we hired to take out ISIS for a price? Oddly, I don't see too many comments about the fall in gas prices.
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Whatever you're just an oil thug and these people are delusional. I predict gas prices to hit over $5 this winter.
 
You all are doing a crappy job of consuming gas. BUY MORE SUVs and trucks, preferably with V-8 engines!

My oil company stock is suffering 😡
 
Hayabusa Rider said:
The fracturing of the cartel is what's driving prices down.


The idea that ISIS is driving down prices by competition is like thinking that someone selling two 5 gallon gas cans for two bucks cheaper by a corner gas station will force the owners to drop prices. No. ISIS does not control a significant portion of the market and in any case they want to make, not lose, money.
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Correct. OP and Jedi don't keep up with the news.

Pentagon: Most of Islamic State’s oil refineries in Syria have been destroyed
 
https://finance.yahoo.com/news/oil-prices-tank-era-abundance-050922345.html

The signs are everywhere: U.S. oil imports are shrinking much faster than expected while oil production climbs to a thirty-year high. Chinese economic growth, and therefore oil demand growth, is slowing. Even output in trouble spots like Libya and Iraq is rising after years of insurrection-led losses.
What is happening in oil markets "finally represent the rebalancing and the impact of this tremendous surge in U.S. oil production," says Daniel Yergin, Vice Chairman of IHS and one of the world's foremost oil historians.
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America is producing more and buying less. China is just buying less.
 
ultimatebob said:
I thought that we were practically independent from OPEC for oil now thanks to fracking.
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Even before fracking we got the vast majority of our Oil from the Americas

NoTine42 said:
Why does OPEC even matter anymore when it comes to oil prices.

When OPEC raises prices, does that mean BP has to pay the Gulf of Mexico or the Oil Sands more for the oil they extract out? ... No.
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BP is under no obligation to sell its oil below market value (excluding any prior contracts they may have)
 
NoTine42 said:
Why does OPEC even matter anymore when it comes to oil prices.

When OPEC raises prices, does that mean BP has to pay the Gulf of Mexico or the Oil Sands more for the oil they extract out? ... No.

If BP can extract oil from the gulf for $50-70/ barrel, then they should have a competitive advantage selling gas cheaper than other companies. Why don't we see gas companies with better supply chains dominating others?
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Yep, that is why WTI and Brent are diverging. America is importing less and less.
 
NoTine42 said:
Why does OPEC even matter anymore when it comes to oil prices.

When OPEC raises prices, does that mean BP has to pay the Gulf of Mexico or the Oil Sands more for the oil they extract out? ... No.

If BP can extract oil from the gulf for $50-70/ barrel, then they should have a competitive advantage selling gas cheaper than other companies. Why don't we see gas companies with better supply chains dominating others?
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a) BP isn't going to sell its product for less than it can get
b) because of a), yes, BP does have to pay more when OPEC raises prices, because BP pays a fraction of the price it receives as a royalty to the landowner/government.
 
Hayabusa Rider said:
The fracturing of the cartel is what's driving prices down.


The idea that ISIS is driving down prices by competition is like thinking that someone selling two 5 gallon gas cans for two bucks cheaper by a corner gas station will force the owners to drop prices. No. ISIS does not control a significant portion of the market and in any case they want to make, not lose, money.
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ISIS isn't paying anything, well, not money anyway, for the oil they are selling. They are smuggling millions of barrels of oil which comes from wells and refineries that ISIS has taken over inside northern Iraq and northern Syria (well, they were anyway).
 
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JEDI said:
edit:
whjo is buying oil from isis anyway?
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Probably China. They have a pretty strong stomach for doing business with groups that the US wouldn't touch with a 10 foot pole, and they don't have nearly as many problems with ME terrorists as the West.
 
$1.38/litre here last time I filled up (a day ago). That's about $5.2/gal.

$3/gal would be 78 cents per litre. I have not seen prices in cents since before 9/11. When 9/11 happened all the prices got jacked up, most gas station signs were not equipped to handle dollar amounts and had to update their signs to add another digit.
 
DesiPower said:
Dumped two stocks last week... they were in free fall
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Maybe you sold it to me🙂. The one stock I'm buying is hitting a 52-week low.

I'm edging in a small amount every day. Hope it works out. Since we're not getting rid of oil anytime soon, it should be fine long-term... Hoping at least.
 
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