The crisis has passed. http://www.bloomberg.com/news/2015-...ew-saudi-king-says-policies-won-t-change.html

 

Passed? The Saudis are pumping to keep the price below Iran's cost of production, to help contain them. I don't see much hope of that situation changing any time soon.

 

Passed? The Saudis are pumping to keep the price below Iran's cost of production, to help contain them. I don't see much hope of that situation changing any time soon.

That wasn't what I was referring to.

 

Sorry, I missed the point again I guess.

Another factor in gas prices is not just that oil is cheaper, it's that the dollar is worth more lately. That doesn't explain most of the price drop of oil, but maybe 10% or so.

 

Its OK, we were discussing the death of the Saudi prince and how that might affect prices. My "crisis" comment was partially whimsical.

 

Prices here have eaked up a bit more (they definitely aren't racing upward, yet). The main station that I use as a benchmark is the truck stop north of the Air Force Academy and today it was $1.779/gal. It's low was $1.699/gal and it's been $1.759/gal for about the last week.

 

Yeah, we're back up over $2 in northern Illinois. I think $1.85 was the lowest we saw.

 

I filled up at $1.95 today.

 

We're still holding at $1.799/gal. Don't know for how long, though.

 

Oil prices continue to drop...

 

Wish I had some risk money. You can buy Jan. 2016 for $54 a barrel. The futures prices think it's going up, but not like it came down.

 

Oil prices continue to drop...

Commodities markets are strange -- they both only respond to things they expect to happen and only respond to things after they happen; very schizophrenic.

 

I agree. Just seems like it is poised to snap back. Tcmtech says his field shut down. And many other high price producers are singing the blues. Peace could break out - who knows.

 

There are massive (record high!) US inventories right now. These will need to be dumped (holding inventory cost $). Only after the demand restablizes with supply with the prices begin to recover. In the mean time, prices will continue to drop.

 

Tcmtech says his field shut down.

I missed that. Would you post a link? Thanks.

 

#232.

http://forum.allaboutcircuits.com/threads/gone-fracking.97597/page-12#post-810705

 

#232.

http://forum.allaboutcircuits.com/threads/gone-fracking.97597/page-12#post-810705

Thanks, I overlooked that post.

 

A year later...
It looks like low oil prices have forced the industry to be more efficient and creative with technology to the point we have
Too much oil, not too little.

http://www.eia.gov/forecasts/steo/pdf/steo_full.pdf

The price of U.S. retail regular gasoline is forecast to average $2.03/gallon (gal) in 2016 and $2.21/gal in 2017, compared with $2.43/gal in 2015. In December, average retail regular gasoline prices were $2.04/gal, a decrease of 12 cents/gal from November and 51 cents/gal lower than in December 2014. EIA expects monthly retail prices of U.S. regular gasoline to reach a seven-year low of $1.90/gal in February 2016, before rising during the spring.

 

I don't see a bottom in February. Still *way* too much inventory and production. We are at least 9 mos. to a year out before prices begin rising again, IMHO.

Note what I said in #174.

 

I don't see a bottom in February. Still *way* too much inventory and production. We are at least 9 mos. to a year out before prices begin rising again, IMHO.

Note what I said in #174.

And, as of Yesterday we have Iran attempting to gain market share for all of their oil. We won't see lower prices for some time. All of these oil producing countries have to stave off the revolution that would happen if they cannot get revenue and support their economies. There is simply too much oil that is too easy to access.