So oil is down to about $62 a barrell

[billfred]

at the risk of sounding like a conspirist. . .do you think that maybe the oil guys are trying to influence the outcome of the election?? the timing seems to be more than just a coincidence. a lot of voters will pull that lever based upon how they feel when they get out of bed on 11/04. . .and if they filled up for $2.25 a gallon on 11/03. . .who knows??

No.. this is not like 2000 where Bill Clinton released oil from the reserve to try and drive prices down before the election.

This is a factor of the economy going to shit - hence lower demand.

 

[juiceddreadlocks]

I doubt it. OPEC is trying desperately to stop the price drop. They have placed a $100/barrel target price as they think that is fair value. In reality, OPEC production cuts don't raise prices that much. It's all boils down to supply and demand, or perceived supply and demand. Six months ago there were fears that oil supplies were dwindling with our increased demand. Now that perception has gone away, so oil prices have plummeted.

On another note, two refineries in the US are planning to shut down and plans to build one have been scrapped. A little hasty considering we only had two months of dropping oil prices. With those refineries shutting down, that would increase gas prices more than anything.

Here's hoping we see $20/barrel oil by Christmas and it stays that way next year so our economy can recover, airlines can survive, and we can all fill our tanks with less money. However, even if gas prices stay low, I don't foresee food producers lowering their prices or others giving up that hidden fuel surcharge quite so easily.

at $20/bbl most of our domestic pipelines will be shut in, and drilling will pretty much stop.

 

[digimon7068]

I doubt it. OPEC is trying desperately to stop the price drop. They have placed a $100/barrel target price as they think that is fair value. In reality, OPEC production cuts don't raise prices that much. It's all boils down to supply and demand, or perceived supply and demand. Six months ago there were fears that oil supplies were dwindling with our increased demand. Now that perception has gone away, so oil prices have plummeted.

On another note, two refineries in the US are planning to shut down and plans to build one have been scrapped. A little hasty considering we only had two months of dropping oil prices. With those refineries shutting down, that would increase gas prices more than anything.

Here's hoping we see $20/barrel oil by Christmas and it stays that way next year so our economy can recover, airlines can survive, and we can all fill our tanks with less money. However, even if gas prices stay low, I don't foresee food producers lowering their prices or others giving up that hidden fuel surcharge quite so easily.

meh. . .they began ratcheting back and flat-out scrapping many of their plans a couple/few of years ago when there became such a big focus on alternative fuels. . .of course, most of the companies are the same piggies at the trough for those research dollars as well. . .

 

[billfred]

meh. . .they began ratcheting back and flat-out scrapping many of their plans a couple/few of years ago when there became such a big focus on alternative fuels. . .of course, most of the companies are the same piggies at the trough for those research dollars as well. . .

why would you build new refineries when oil production has not increased in 3 yrs? No need for new capacity until their is new production.

 

[digimon7068]

why would you build new refineries when oil production has not increased in 3 yrs? No need for new capacity until their is new production.

yeah. . .that's what i'm sayin'. . .

 

[Razorguns]

Oil prices are set by the commodities market. Look up "ICE".

Thank you, have a nice day.

r

 

[Cutiebaby]

whdh said that opec is gonna stop producing so much oil per day to boost the price..
WTF????? made no sense to me. As if we need oil costs boosted.

 

[mrplunkey]

whdh said that opec is gonna stop producing so much oil per day to boost the price..
WTF????? made no sense to me. As if we need oil costs boosted.

Yup. While price-fixing is America is quite illegal (here they put you in jail), foreigners are welcome to collaborate on pricing and manipulate both supply and price in world markets.

 

[PICK3]

Reverse OPEC P'WNAGE for driving a subcompact