Oil slumps 7% to one-year low

Wow, that is some number, 7% in on day! I guess fracking is working.

 

With the advent of electric powered cars and trucks, buses etc. and the ever increasing emphasis on sustainable energy sources to generate power the long term outlook for crude oil products looks similar to the position coal as an industry is in today,NOT GOOD.

 

Very very very long term.

 

Sure not seeing it at the pump but then again I live in Washington which us a blue state with a very high gas tax

 

I think it's a cruel joke the Saudis play on the US fracking industry. They run the price up until the frackers start scrambling around to drilling then they cut the price and run them out of business for a while.

 

Let us not forget that a couple of months ago Trump DEMANDED lower oil prices.

Tell me again who holds the power in the world?

 

Except.......the frackers have been prospering.

 

They can make a few bucks above $50. They pump, but don't drill much below that.

 

Nope.......they are now pumping it all out to sell it while it's worth something.

They are not stupid.

 

You do understand that electricity doesn't actually grow on trees?

 

I think that's what I said.

 

If you tell him that it is fed from coal he will have a heart attack. Be nice to the ol fella...lol

 

Probably if he is a Trumpie he will think that is a positive for the environment. Don't they all believe global warming reduces the need for central heating and consequently reduces energy usage ?

 

A few months ago Lefties were blaming Trump for high oil prices.
http://fortune.com/2018/06/29/trump-opec-crude-oil-gas-prices-change/

I'm sure he won't get any credit for any price drops.

 

And one of the posters who posted on this thread created a thread several months ago saying that it was good that oil prices were so high as that is what Trump wanted and Trump and the poster wanted prices to go higher. He also said that he was happy to pay the higher pump prices because the higher price is good for the US

 

61falcon stated "and the ever increasing emphasis on sustainable energy sources to generate power"

 

Who remembers "peak oil" ???
There's been quite a few of them. I first became acquainted with
the term late 1970's. About the same time the Global Freezing
campaign was getting underway.

 

Or margin calls are kicking in.

 

Note the word " and" . English is a tough language.

 

Fracking is a massive ponzi scheme.

https://oilprice.com/Energy/Energy-General/Why-Is-The-Shale-Industry-Still-Not-Profitable.html

So while the industry got a brief respite for a few months when WTI spiked to over $70/bbl - the industry is now back to losing scads of money with WTI falling well below $60.

At some point this bubble will pop - financiers will stop ploughing good money after bad - and "Shale Oil" will become a dirty word.

 

I can't speak for any other poster besides me. While I don't want to pay any more than I have to for anything higher fuel prices are at times a sign of a growing economy which requires more energy. I have not read much on research that might identify the reasons behind the price increases. I think he is wrong about what Trump wants since Trump was pushing the mid east to lower prices.
https://www.nbcnews.com/business/energy/trump-blasts-middle-east-high-oil-prices-u-s-world-n911496

 

I have heard that oil is sold on the world market. I think that means we put our out for sale on the world market and it's sold at market prices. I doubt OPEC does that. I wish we supplied ourselves first and then sell to the world market. I should read up on this but I don't have much time for it. I have a business to run.

 

All countries that produce will put their oil on the market at markets prices. OPEC is there to control output to stabilize the price of oil at a certain agreed upon rate. For instance, KSA has proposed cutting output at the next OPEC meeting to stop this slide in oil price per the thread. Oil is priced per sector of production because the makeup (Quality) of crude oil is different depending on where you get it. We export a lot because the quality, our refineries prefer for the most part other grades of crude which we import.

https://en.wikipedia.org/wiki/List_of_countries_by_oil_exports

There are several OPEC countries that export like we do.

https://en.wikipedia.org/wiki/List_of_countries_by_oil_imports

Countries that import either do not have production, or have high refinery capacities that demand a good crude quality. They are not efficient with certain crudes, more efficient with others.

https://oilprice.com/oil-price-charts

This is a partial list, the link shows more. Low quality Western Canadian Select is @ 14.65 per barrel, all the way up to Dubai crude @ 67.26 per barrel. Each crude on this list has a different fingerprint and has different cut yields ie. gasoline, asphalt, jet fuel, kerosene, naphtha