Thread: How low can it go

Originally Posted by Tracker123

No lies, just evolving technology and global politics. It's somewhat complicated how it all works. I know because it's my business to know, how I make a living. Saw this coming over a year ago and attempted to warn folks to no avail.

If you saw this coming a year ago, you should have gone short in the oil futures. Just sayin. Let me know when it's going back up so I can Go Long!!!

It is a shame that a barrel of oil is cheaper than s bucket of KFC.

Originally Posted by BigRiverMarine

If you saw this coming a year ago, you should have gone short in the oil futures. Just sayin.

I did, I learned a very hard lesson in the mid 80's.

The articles of the price oil, producing costs wise are true, but there is more to it than just that. The given price per barrel of oil is a benchmark only. That benchmark is under specific conditions (specific gravity, paraffin content, C30+ composition, etc.), thus a standard set. Sure the Bakken Shale in the Dakota's is prolific, but there are costs involved. The produced crude oil is extremely waxy (a high paraffin content). On a cold day you couldn't pour it out of a glass. Basically a candle. Transportation of the product requires a very high cut of solvent and/or heated rail cars.

On the flip side, the condensate produced in the Marcellus of Pennsylvania looks like a clear jet fuel. The vapor pressure is low that if you had a glass of that on a warm day, it would be gone at the end of the day. Obviously, a barrel of the Marcellus product is worth ten times that of the Bakken product.

As far as the current state of the oil industry only effecting those who work it - is wrong. There is a trickle down effect. For example, for every dollar a barrel drop, the state of Louisiana loses 12 million dollars. How do you think that loss is made up? There are currently furloughs and lay offs for state employees. Higher education is getting hammered. Etc., etc.

So, you would like the price better at .50 a gallon. The toll on the economy would be devastating.

Hate oil field people are loseing jobs, but I do enjoy the lower fuel prices. All my life I have worked in the only job sector where we buy and ship everthing at retail value, but are forced to sell our product at wholesale price, so every bit we save on fuel cost is worth twice as much to us.

On my side we buy at retail and sell at wholesale. Love the cheap diesel but our product prices are tied to oil and copper prices. Lot of money leaving the U.S. right now in jobs and taxes. $65 a barrel is a good price but it never settles there. The House of Saud will keep this up until the frackers are bankrupt. Or until Russia sends a missle to Jordan where they have troops. Hurting Russia worse than us. Enjoy the downside because the upside will be swift and extreme one day

99 Cent Gas May Be on ItsÂ*Way

Who wants to bet on the over/under at .99 cents a gallon. Personally I think some geo-political event will be manufactured. Like Iran blockcading the straights of hormuz. Can I take this tinfoil off my head now ?

I haven't seen a mention of the Saudis in this discussion. They are the biggest political producer in OPEC and started these low prices to undercut Russia, who is trying to break into the global energy market. With this Iran deal, they are now a player and give the Saudis another reason to keep oil prices low, to keep their enemies the Iranians from profiting.

Over.

$1.25

Bout what I'm thinking also. My mind just won't let me go with .99 because I had written those days off several times.