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Oil falls as OPEC opts not to cut production - $68 per barrel
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2014 Nov 27, 12:46am 6,827 views 17 comments
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Strategist
2014 Nov 27, 12:49am
OPEC won't be eating turkey today. :) :)
The criminal Cartel just can't reach an agreement, and when they do, they cheat.
There is no honor among thieves.
MisdemeanorRebel
2014 Nov 27, 1:00am
At $75, Canadian Fracking makes $1/barrel. Texas Fracking about $10/barrel.
If it goes down below $65, all North American fracking will be put on hold because it would run at a loss.
Russian and Venezuelan Oil averages $50 and Saudi Arabian Oil about $30/barrel to produce.
That's not the whole story though. When oil declines, big oil producers' currency tends to weaken, mitigating the effects of the low prices.
And it'll start to suck again to be a Petroleum Engineer, like it sucked ~1980-2000.
But it probably won't stay below $60-$70 for very long.
Strategist
2014 Nov 27, 1:04am
At $75, Canadian Fracking makes $1/barrel. Texas Fracking about $10/barrel.
If it goes down to $65, all North American fracking is put on hold because it would run at a loss.
Russian Oil averages $50, Venezuela averages $60, and of course Saudi Arabia about $30/barrel to produce.
And it'll start to suck again to be a Petroleum Engineer, like it sucked ~1980-2000.
Oil prices could jump back up anytime. In the meantime the lower prices will help kick start the weak world economies.
Tenpoundbass
2014 Nov 27, 2:58am
OPEC isn't stupid, all of the unrest is directly and indirectly tied to the west manipulating Energy prices.
It will take about 6 months or more for the deflationary effects to bring prices back in line for your average struggling person who depends on every penny they make just to live and eat.
Happy people don't protest the government, just remember that.
But it probably won't stay below $60-$70 for very long.
the next price shock is looking to be a real bitch.
New Renter
2014 Nov 27, 3:24am
But it probably won't stay below $60-$70 for very long.
the next price shock is looking to be a real bitch.
OPEC is going to keep oil cheap until GM ressurects the Hummer brand, buys back and crushes every Volt. Once American highways are ruled by oversized behemoths once again.
Then and only then will production be slashed to send oil to infinity and beyond!!
Lower prices until US supply does not look so attractive and/or threatening anymore?
In the meantime the lower prices will help kick start the weak world economies.
except for those who sell oil...
This is bullish for the economy. Dow 20,000?
consider all the investment/speculation in north american extraction, along with the associated jobs. this is most likely unsustainable anyway, as global demand is starting to lag. opec is countering the increase in north american exports first, before trimming their oversupply.
This is bullish for the economy. Dow 20,000?
consider all the investment/speculation in north american extraction, along with the associated jobs. this is most likely unsustainable anyway, as global demand is starting to lag. opec is countering the increase in north american exports first, before trimming their oversupply.
Transportation costs will be lower across all industries. Consumers will have more disposable income. The cost to manufacture the many goods that utilize petrochemicals will drop as well. Bullish on balance.
Transportation costs will be lower across all industries. Consumers will have more disposable income. The cost to manufacture the many goods that utilize petrochemicals will drop as well. Bullish on balance.
tax collection will be down. pension funds invested in oil will be down. consumers may very well save vice spend.
Strategist
2014 Nov 27, 12:44pm
In the meantime the lower prices will help kick start the weak world economies.
except for those who sell oil...
Yeah, trouble makers who hate us.
Venezuela, Russia, Saudi, Iran etc.
Catabolic Consumers!
they are lame ducks. and it's not just mom & pop - it's the whole food chain, including government. airline stocks will increase as a result of energy price drop because the airlines will pocket more profit even if they don't increase sales. this is the hunger, the catabolism - we have just seen this with buy-to-rent housing. it's malignant growth, because wealth has no reason to purchase more goods than it already does: rich people don't buy 100,000 ford trucks if the lower classes don't/can't. further, investment funds and tax revenues are just a bunch of future promises - they don't care how things grow or are collected, they just need to cover promises made.
perhaps only baby boomers are delusional enough for business-as-usual, but i imagine that some do have a clue. maybe they are not yet separated enough from the good times throughout their lives. though i have suspicion that the future of healthcare will probably snap them out of their daydream.
look, the rockefellars have divested oil. all the majors have cut capex. the transition will be as painful as our system and way of life has determined it to be.
Yeah, trouble makers who hate us.
Venezuela, Russia, Saudi, Iran etc.
the economy is global; it is interconnected.
http://www.cnbc.com/id/102222286
The Organization of Petroleum Exporting Countries (OPEC) decided on Thursday not to cut oil production, despite sliding oil prices.
Brent crude oil fell more than $3 to under $75 a barrel—a fresh four-year low—on the news while West Texas Intermediate (WTI)—dropped below $70. Global oil prices have plunged since peaking in June, and Brent crude has lost around a third of its price from $115 a barrel.
Following a meeting of OPEC in Vienna, the oil minister of leading member Saudi Arabia, Ali Al-Naimi, was asked whether the group had decided not to reduce its output from 30 million barrels per day. He responded: "That is right".