Oil is going up again

[ponyo]

http://www.reuters.com/article/us-global-oil-idUSKCN0VW03S


So, how long before oil actually falls to the $20/bbl range?

My guess is later this year when and if S&P hits 1600.

 

[OverVolt]

On the news lately the general line has been that low oil prices are bad for the world economy. I don't understand this, surely it's the opposite?

Weak global demand is the elephant in the room no one wants to talk about. Global trade is much slower now.

http://fortune.com/2015/11/16/global-trade-slowdown-us-economy/

 

[Imp]

FYI if oil is so cheaper why aren't all the petroleum products I buy cheaper now, when the cost of oil was sky high they raised airlines fees, all food prices went higher because of the high transport costs. Oil is dirt cheap now but none of those costs have gone down.

The integrated (?) oil companies with upstream and downstream operations are still making huge profits, last I checked -- they may officially have recorded some losses due to writedowns or one-time charges though. Can't help but feel they're doing relatively well because they aren't cutting their product prices in line with costs.

On the news lately the general line has been that low oil prices are bad for the world economy. I don't understand this, surely it's the opposite?

Something like hundreds of thousands of Americans have lost their jobs due to oil prices tanking. Officially, 40 thousand or something Canadians have lost jobs. Those people were making 6-figure salaries, supported by reasonably well paid staff. Those people now on unemployment aren't eating out, buying useless shit, etc. There's some trickle-down...

 

[norseamd]

It's almost like people have forgotten the type of poster that Sonikku is...

It was obvious as sarcasm from lightyears away.

 

[norseamd]

WHHOOOAAAA!!!!!

http://www.economist.com/news/middl...-saudi-arabia-considering-ipo-aramco-probably

http://www.nasdaq.com/article/potential-saudi-aramco-ipo-wouldnt-include-oil-reserves-20160124-00033

 

[11thHour]

WHHOOOAAAA!!!!!

http://www.economist.com/news/middl...-saudi-arabia-considering-ipo-aramco-probably

http://www.nasdaq.com/article/potential-saudi-aramco-ipo-wouldnt-include-oil-reserves-20160124-00033

What a great time to invest in Saudi Arabia...haha.

That should go over well with the locals.

 

[norseamd]

Asian shares, oil retreat as Saudi plays down output cuts

http://www.reuters.com/article/us-global-markets-idUSKCN0VX01F

 

[StrangerGuy]

It's just one gigantic Prisoner's Dilemma experiment in action. The need for hard petrodollar to compensate their own fiscal ineptitude far outweighs the need of collective production cuts.

 

[Meghan54]

Saudi Arabian Oil Minister Ali al-Naimi surprised fellow members of the Organization of the Petroleum Exporting Countries on Tuesday when he said the kingdom was prepared to let oil prices slip to $20 a barrel—a level that would strangle some of the group’s own members.

At a Houston conference drawing oil-company executives and officials from producing countries, Mr. Naimi ruled out coordinated production cuts across OPEC and non-OPEC nations to address an oversupply that has caused crude prices to drop 70% since June 2014. Oil supply is outstripping demand by a million barrels a day.

“Inefficient, uneconomic producers will have to get out,” Mr. Naimi said. “This is tough to say and that’s a fact. “We can coexist with $20. We don’t want to, but if we have to, we will.”

http://www.msn.com/en-us/money/markets/saudi-oil-minister-surprises-opec/ar-BBpVQ7x?li=BBnb7Kv


$20/bbl oil may be closer than anyone thinks....

 

[Meghan54]

The vertically integrated (?) oil companies with upstream and downstream operations are still making huge profits, last I checked -- they may officially have recorded some losses due to writedowns or one-time charges though. Can't help but feel they're doing relatively well because they aren't cutting their product prices in line with costs.



Something like hundreds of thousands of Americans have lost their jobs due to oil prices tanking. Officially, 40 thousand or something Canadians have lost jobs. Those people were making 6-figure salaries, supported by reasonably well paid staff. Those people now on unemployment aren't eating out, buying useless shit, etc. There's some trickle-down...

Another part of the problem is all the loans made to the fracking startups that are now going bad. Banks that made huge loans are now faced with a huge number of potential defaults.

 

[Brovane]

I came in expecting this was a dmcowen674 thread and now I am disappointed.:\

 

[norseamd]

Another part of the problem is all the loans made to the fracking startups that are now going bad. Banks that made huge loans are now faced with a huge number of potential defaults.

 

[RLGL]

I'm expecting gas prices to quickly go through the roof again...after all, I'm about to head out in the motorhome...and will burn through close to 400 gallons of gas before I get back home...

Ya gotta PAY to PLAY

 

[BoomerD]

Ya gotta PAY to PLAY

Dude...I own a gas-guzzling house on wheels. Paying is something I understand...but that doesn't mean I like paying more than I have to...

Owning an RV is like owning a BOAT...(Break Out Another Thousand) Parts aren't cheap, accessories aren't cheap...and gas...well cheap gas doesn't happen very often...but when it does...