Oil Drops over 30% since summer, now what?

[davrow]

I try to not over think things, low gas prices = more money in the bank for me, simple enough!

low gas prices for me = going into debt more slowly.

 

[Kenneth in Texas]

Arabs? It isn't the Arabs that have flooded the market. It's American entrepreneurs.

Saudis basically control the worlds oil

 

[tallyho8]

I'm buying gas here for $2.29 a gallon now. Tomorrow it may be cheaper. Oil is being produced across America now in quantities higher than in years past because many are investing their fortunes to produce this oil to make money. When gas sells for $4 a gallon these investors can rake in profits for their investments. When gas sells for $2 a gallon, the investors lose money and go broke and oil production in the USA slows, prices rise and OPEC makes huge profits again until that day in the future when new investors once again start producing oil in the USA again, lowering OPECs profits and the scenario repeats once again.

OPEC knows what it is doing and they can well afford to make less income for a short period until they drive USA investors broke, decreasing production and raising OPEC profits once more.

Enjoy the low prices now but don't buy a Hummer thinking the low prices are here to stay.

 

[KiotiKowboy]

The US "could" set a floor price that would ensure continued domestic production. Place a tariff on all imports to keep the field level.

My problem with this is ... I don't trust the government to establish the floor price.

The advantage would be, we would strengthen the domestic industry, create jobs, stabilize prices and remove the threat of being held hostage by a bunch of middle eastern &*&^%&s.

 

[wroughtn_harv]

Saudis basically control the worlds oil

I think you need to expand your news sources. Today's Wall Street Journal has a couple of articles on the current oil crisis. You might find it enlightening.

For instance I found out that the price of diesel and gasoline leaving the refiner jumps over a buck a gallon. That's interesting don't you think?

 

[wroughtn_harv]

Wall Street Journal page C 4 today. It looks like the crude surplus is going to get another half a million barrels of oil added per day January 1st because Iraq just signed an agreement for export. US government likes this because it will help the Iraqis carry their own water in their war against religious fundamentalism. Too bad you can't know when it will bottom so you can fill your own 10,000 gallon tanks.

 

[KiotiKowboy]

Wall Street Journal page C 4 today. It looks like the crude surplus is going to get another half a million barrels of oil added per day January 1st because Iraq just signed an agreement for export. US government likes this because it will help the Iraqis carry their own water in their war against religious fundamentalism. Too bad you can't know when it will bottom so you can fill your own 10,000 gallon tanks.

I wouldn't mind buying 1000 gallons of non-ethanol (selling local today for 2.55) - if I thought I could use it before it went bad.

 

[Pilot]

Low oil prices are hitting Venezuela hard. 65% of their gov't spending is funded by oil. A lot of it is shipped to the Gulf Coast for refining. The XL pipeline will take much of that market away & hurt the Venezuela gov't even more. And they are already in trouble as production has fallen by 1/3 since 2000 and the socialist government has grossly mismanaged it's affairs.

Lower prices will also hit other countries who are not our "friends", such as Russia, where 40% of it's budget comes from oil and Russia, not Saudi Arabia, is the worlds largest oil producer (Saudi has bigger reserves, but Russia is pumping more). Iran will also be hurt.

So enjoy lower prices for your bank account benefit as well as our foreign affairs situation!

 

[Kenneth in Texas]

I think you need to expand your news sources. Today's Wall Street Journal has a couple of articles on the current oil crisis. You might find it enlightening.

For instance I found out that the price of diesel and gasoline leaving the refiner jumps over a buck a gallon. That's interesting don't you think?

ok i will believe everything I read.

 

[300UGUY]

ok i will believe everything I read.

The WSJ, which I read daily for over 20 years, is 2 things:

1) One of the most conservative media outlets in the world.
2) One of the most reliable.

On financial news, I'd trust their reporting over pretty much anybody else.

Of course, IHMO