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WTI oil dropped to $87.65 (next month's delivery), that's $2.09 a gallon. Lowest I've seen in a long time.

West coast spot carb unleaded is down another 9 cents overnight to under $2.45, dropping like a rock.

If I didn't know any better I'd say this qualifies as a full on phenomenon!

Quote:

Originally Posted by Typ616 (Post 8298059)

Friend of mine wrote this piece:

Oil Prices Falling: Is a Bear Market Ahead for This Commodity? Oil & Energy Daily | Global Resource Chase

"The move by Saudi Arabia last week – along with continued increases in U.S. oil production – has changed the equation completely, and that should worry every investor who owns oil shares."
~~~~~~~~~
Guess I'll hold off on buying more Chevron stock.
It's a crap shoot for the small investor.

Quote:

Originally Posted by Don Ro (Post 8298192)

That article goes a long way to explain the greater drop in brent crude vs. WTI.

That is assuming that that saudis are actually selling their lower priced oil to someone else besides their own agents.

If you sell it to yourself at $90, you effectively take it off the market and that is equivalent to cutting production without telling anyone. You avoid some of the poltiical pressure and accusations of manipulation but still achieve the same result.
Then, when the maket corrects upward due to lower actual supply, sell that $90 oil for real this time but at $100.
This aluminium foil hat is too tight, I need to make a new one.

The majors (oil companies that pull oil out of the ground) will take a hit as oil keeps falling. But the independant oil companies that buy oil, refine it and sell the finished products should actually benefit.
Problem is, the market often can't tell the difference between the two so the indy's stock price gets drug down with the big boys, and then recover really really fast at the first hint of earnings reports.
Sometimes.

This is an interesting thread, I'm going to do some more reading on the subject.

Quote:

Originally Posted by Typ616 (Post 8298059)

Friend of mine wrote this piece:

Oil Prices Falling: Is a Bear Market Ahead for This Commodity? Oil & Energy Daily | Global Resource Chase

Very interesting piece, thanks.

West coast spot price is down again overnight to $2.41 /gal.

It's those darn Libyans!!! LOL

http://forums.pelicanparts.com/uploa...1412870311.jpg

Quote:

The price of North Sea Brent crude oil has fallen to around $91 per barrel, the lowest level in more than two years and about 21% lower than its year-to-date peak of $115 per barrel on June 19. Before its recent decline, average monthly Brent spot prices had traded within a narrow $5 per barrel range, from $107 to $112 per barrel, for 13 consecutive months through July 2014.

During that period of low price volatility, substantial oil supply disruptions in the Organization of the Petroleum Exporting Countries (OPEC) were offset by increases in U.S. production and weaker-than-expected global demand. More recently, however, the resumption of significant Libyan oil production, combined with the weakening outlook for global oil demand, has put downward pressure on prices.

The sustained increase in Libyan production over the summer—increasing from 200,000 barrels per day (bbl/d) in June to 900,000 bbl/d at the end of September—has added supplies to an already well-supplied light sweet crude market in the Atlantic Basin, despite the fact that Libya's recent production has not come close to its previous level of 1.65 million bbl/d in 2010 and 2011, before fighting that occurred during the Arab Spring.

Over the past several years, increasing U.S. light sweet crude production has significantly reduced light sweet crude imports to the United States. Those reduced imports, which were sourced primarily from Africa, became available to replace Libyan production lost during a time of civil war and subsequent unrest. While Libyan production was disrupted, supply and demand in the Atlantic Basin was relatively balanced. However, as Libyan production has returned and has remained largely online despite internal unrest, the price of Brent crude oil has fallen.

Although the return of significant Libyan production has been an important factor putting downward pressure on the Brent price, weakening global demand, particularly in Europe and Asia, is also important. Economic growth in 2014 outside of the United States has been slow, and recent data releases appear to confirm lower-than-expected growth, particularly in Asia and Europe.

China reported that its industrial production has risen at the slowest pace since 2008. In Europe, the Organization for Economic Cooperation and Development (OECD) has reduced expectations for economic growth through 2015 after data showed second-quarter 2014 gross domestic product (GDP) fell in Germany and Italy and stagnated in France.

Near-term seasonal market conditions are also reducing crude demand, as substantial refinery maintenance in the United States, Europe, and Asia takes place in September and October, reducing demand for crude. For more analysis, including near-term factors that could alter the current oil market landscape, see the September 24 This Week in Petroleum.

Lower demand, higher supply drive oil prices to lowest level since 2012 - Today in Energy - U.S. Energy Information Administration (EIA)

In Montana, we had the cheapest gas in the country about a year ago at 3.39 or so. In the past year, the rest of the country has decreased dramatically, and we have not changed. Very odd. Wish I knew why.

Also, retailers in Los Angeles are hanging on to their profits for dear life, it's barely creeping down with 87 octane @ $3.55 in my neighborhood, some stations much higher. Like someone above said, (Sammy?), once one of them drops their drawers it's going to be an avalanche.

So is OPEC continuing their pumping to try to put the hurt on small producers in the US where their cost might be about $90 per barrel? The father of one my daughter's friends started drilled in West Texas and he is getting hurt because his break even point is around $90.

Seems like a good way to get rid of the competition temporarily.

Quote:

Originally Posted by Neilk (Post 8299834)

And, as stated in the article, the Saudis aren't dumb. If they want to screw with the market, they'll drop the price and all that production up in North Dakota will dry up as well, same as in West Texas.

Crude oil tumbled below $84 a barrel on Friday for the first time since the 2012 Olympics in London.

Oil prices are plunging. Don't cheer yet - Oct. 10, 2014

$3.29 in Anaheim CA today.

I saw $3.09 for reg. today in Scottsdale, AZ.

Gas prices in NJ yesterday. And of course, full serve 'cause that is all we have. BTW, in the background you can see a famous diner that was displayed at the 1939 world's fair (White Manna http://en.wikipedia.org/wiki/White_Manna).

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