This is just coming across the wires and put a little smile on my face. Looks like I might be able to get some winter fuel. ;D
http://www.foxbusiness.com/story/markets/industries/energy/oil-hits--month-low-economic-malaise/
What do you think is going to happen to prices before OPEC gets involved? ???
Beyond the lower pump prices, I am very happy to see the drop for another reason. Investors that thought investing in oil no matter what the price was a failsafe investment are now learning otherwise. That should benefit us all for a little while, until they get over their shock.
What I found interesting was when oil came back down to $80/bbl and OPEC announced they were going to call an emergency meeting to discuss how to keep the price up.
Now, I don't fault them for being concerned, and if orders for crude oil are falling, it makes sense for production to be reduced to match it. But what I find interesting is that when accused of shorting production to keep prices up back when it peaked, they claimed that it was entirely due to investors - that if it wasn't for interference from investors oil would be ......
wait for it ......
..
..
..
drum roll please ....
....
tada! $80/bbl.
I've got 3 drums ready and waiting! I suspect that even if Opec cuts production, the price will continue to drop. Even though prices have been dropping, there has been no increase in useage. In fact, fuel consumption continues to drop. I suspect that in the current economy, if fuel prices went back up, consumption would drop even faster. Just a prediction, which is kinda like a bellybutton and just as useful! ;D
Glenn
Hi Guy's,
I read that OPEC allready cut production 2 weeks ago by 1 million barrels a day and it didn't effect the market.
Nick-
When oil was this low before wasn't the price of gas aroung $2.50 and diesel about the same? Makes you wonder, course didn't Exon's profits fall?
ED
Before I continue, let me explain..... I buy gas and diesel fuel like all of us.
My oil well checks from last summer were based on $140.00/barrel. I am going to receive a lot less now. I am not complaining. As my 401K is now 32% lower this year, everything is going down. Even at $3.00/gallon, diesel is still expensive. We can all now go farther. I hope this will last for awhile.
If there is a silver lining to the stock situation, it's that oil is taking a big hit too. Closed under 70/bl today! I topped up my tank for the first time in almost a year. $3.36/gal. Gas is under 3/gal Yahoo! ;D Or as Willie would put it-Back on the road again!
Quote from: HighTechRedneck on October 16, 2008, 08:55:27 AM
... they claimed that it was entirely due to investors - that if it wasn't for interference from investors oil would be ......
tada! $80/bbl.
Good point, and OPEC is feeling sort of boxed in right now. The only real event they can pull off is raise or lower production, and now they are finding that lowering production is not having the desired effect. Apparently the global drop in demand outpaces the OPEC production cuts. Of course there IS a floor to this spiral. We just have to wait for it to show up. Pundits put it at $60/bbl.
One trick that OPEC might eventually pull is to RAISE production to make us (once again) so lazy and complacent that we no longer will seek ways to conserve or drill for our own oil. THEN ... they can ease the production back down and get the price back to where they want it.
Call me paranoid, but this scenario seems to be played out about every 25 years.
Merlin
there is diesel at 3.19 here in the aera today
Well, I think I've done you all a favor. I went and bought a load of diesel yesterday. That should guaranty that the price should drop more now. Many years ago, I gave New Orleans a relatively cool summer by rewiring and installing AC in the house.