How low will it go?

[TheSlamma]

Makes me want to trade in my shitcan prizm for a Hummer with a leak in the fuel tank!

 

[PingSpike]

I figure it was insane on the top, ignoring demand and supply fundamentals, so it'll be insane on the bottom for the same reason before it evens out.

I thought it was funny when oil traders were saying "its the fundamentals" when nothing changed while they cheered it up. I remember reading a few of them being bewildered that it was going down in the face of stockpile reports, political issues and supply issues that would normal cause a rally. In never had a fundamental reason to get that high in the first place...thats why its ignoring your wonderful fundamentals on the way down.

 

[SSSnail]

Originally posted by: BurnItDwn
How about Legalize prostitution/brothels ... charge sales tax for their services, hookers pay income tax ...

Legalize some drugs that aren't lethal but are illegal, charge sales tax for them.

BID for President!!!

 

[JS80]

Originally posted by: Skoorb
One of the few silver linings.

We will see a 7 in front of it. It may hit into the 60's, although I think the decrease will slow down. I doubt it's going to swing much below 70's this year. Depending on how things are next year it may go down further and comfortably below 70. I think that OPEC is going to do all it can to raise prices. It must be PANICKED right now, but I don't know what power it really has at the moment, and if Saudi continues to pump to its max, OPEC's power is gutted.

Additionally, if OPEC cuts production and raises prices, say, $20, in the fact of a global economic meltdown, people will become enraged and livid, like in the movie 28 Days Later. I don't know if OPEC can really withstand that much hate if it's clearly and directly responsible for it.

In any case, I think we're closing in on the "true" non-bubbled value of oil, so the fact it's down $65 now in three months (!) doesn't mean it will keep shedding that much for much longer. There's only so much further it can go, and expensive extract approaches like the tar sands require, I think, $50/barrel to break even, so it does hit a fairly hard limit on how low it can go, at least semi long term.

OPEC cut won't do anything. As prices spiral down an OPEC cut agreement will not translate to actual cuts by OPEC countries. They are all hurting right now and will mostly likely increase production. Going through with the cut is shooting themselves in the penis, butters style. I predict $50.

 

[JS80]

Originally posted by: WHAMPOM
I still have an unanswered question. What was the difference in price between oil delivered to the refinery and what OPEC got paid?

I would logically deduce that it's different between each country and the contract they have with the oil service company. I would imagine costs to extract vary from field (flat sand) to field (ocean rig).