oil prices

[kenmac]

Just a few months ago everyone(including me) was worried about how high the price of oil was going to go. Today it closed at $ 33.87. Will we see $25.00 oil b-4 it starts to rise back toward the $100.00 mark ?

 

[number two]

Don't know right now-my crystal ball is down! The $33.87 is for January delivery-next week I believe will be for Febuary delivery at about $42 so far.I seem to recall hearing something in the last day or two that US oil demand for the next 10 years or so will be flat.Alternate energy,economic conditions,more fuel efficient vehicles,etc.Hey,if it gets bad enough,we could see $.99 gas! Merry Christmas.

 

[7th Angel]

...Hey,if it gets bad enough,we could see $.99 gas! Merry Christmas.

Not where I live. Gas here in Susanville, California, is the highest in the country. (Hawaii excluded). If we ever get under $1.00, you all will be paying about 30 cents...

 

[tallyho8]

In the 1960s and 1970s and 1980s the most expensive gas station in our area was only 3 cents a gallon higher than the cheapest one. Now the cheapest one has gas for $1.34 and diesel for $1.99. Only 1 mile away another station has gas for $1.68 and diesel for $2.58, self serve.

Competition drives prices down and if there are only a couple of stations in your community you will rarely ever see the lowest prices.

 

[kenmac]

Competition drives prices down and if there are only a couple of stations in your community you will rarely ever see the lowest prices.

I don't if that statment would relate to gas stations. On the hwy to my house there are 5 stations within 2 blocks of each other. Shell, BP, Exxon, & 2 independents all are $1.55 per gal

 

[ihookem]

Gas will go back up because the "messiah" is getting sworn in. Then you will here how everything is looking up, and the sun shines a little brighter now that Bush is gone. Klinton was in for nine days and they started talking like that. Bush was in nine days and the news anounced an economic slowdown. Just a theary. I guess anything can happen though.

 

[ninefinger]

I thought I heard a day or two ago that OPEC was going to cut production by 2 million barrels a day. That is not going to help. Diesel here is $2.35 and up a bit more at different stations.

 

[Ductape]

Yep, but interestingly, OPEC made the announcement and the price of crude still went down.

 

[sw03]

it is funny OPEC needs to maintain a cetain floor for there budgets. To bad, they are playing god. They are walking a fine line and they are now on the wrong direction.

 

[HappyCPE]

The problem with OPEC and all the other big oil producers is that they're addicted to $100+ oil prices and the income it generates. Something like 80% of Iran's economy is based on oil exports. Now that they aren't getting the big bucks they and all the other exporters will cheat on the quotas just to keep the money coming in.

IMHO, oil has dropped in price partly due to the global economic slowdown reducing demand but primarily due to all the speculators pulling their money out of the market. Remember the Saudis telling us $147 oil was due to speculation? Seems they were right.

I figure oil will go down more, a lot more, just long enough to kill off any efforts to switch over to some other type of fuel. Then it will drift back up again and the addiction cycle will continue. Just like it did in the 70's and 80's.

These whipsaw moves in prices will mean headaches for everyone's economy, users and producers alike. You can't make a business plan without being able to plug in a valid cost of energy, and if you can't make a business plan, you don't have a business.