LOL at OPEC cutting production

[mustangguy289]

ya ya its bad for the economy... well maybe the economy is bad for it.... anyway will we see gas for < 1.30 soon?

http://i82.photobucket.com/albums/j279/ltuguy289/untitled.jpg

[Muffrazr]

Probably not. They'll be cutting production whcih will raise the cost of fuel.

[White trash wagon]

They production in half and oil will go back to $100 + a barrel.

[AL P]

They production in half and oil will go back to $100 + a barrel.

They can't do that though, their own economies are so tied to oil that they would collapse. All we are seeing today is the downside of speculation in the oil markets.

[wesman]

They can't do that though, their own economies are so tied to oil that they would collapse. All we are seeing today is the downside of speculation in the oil markets.


NO NO NO!!! That was the market dictating the price.......it was all fundamentals :rolleyes: :rolleyes: :rolleyes: :rolleyes:

I do look forward to the ride back up to $75 or so tho...it will make me a lot more money than it will cost me.

--wes

[AL P]

A lot of people would disagree that speculation was a driving force but I think it was. And a lot of it came from hedge fund money. Hedge funds are dying at a pace not seen before and people are becoming a lot more risk averse. That is a lot of money leaving the market and a lot of money that isn't going to be chasing oil again anytime soon. The reason I think it is so powerful is I have seen what it did to REIT stocks in such a short timeframe, they were shorted into oblivion in a matter of weeks. I think we will see $20 oil again soon.

[wesman]

I whole-heartedly agree with you....they were no doubt the driving force behind the crazy prices and I'm glad half of them got caught with their pants down. Perhaps if they actually had some skin in the game initially it would make them even more apprehensive to speculate like they did. Much like all these junk bond buyers they never thought they'd get caught with their collective hands in the cookie jar.

--wes

[White trash wagon]

They can't do that though, their own economies are so tied to oil that they would collapse. All we are seeing today is the downside of speculation in the oil markets.


Simple math AL P. $36 a barrel x 10,000,000 barrels is less profitable than $72 a barrel x 5,000,000 barrels. Why sell twice as much oil for the same money? Plus thier reserves will last longer.

[GhostTX]

Simple math AL P. $36 a barrel x 10,000,000 barrels is less profitable than $72 a barrel x 5,000,000 barrels. Why sell twice as much oil for the same money? Plus thier reserves will last longer.
The problem is at the high price, they weren't selling as much, yet production was going at the same rate. So there was too much supply on the market and when it came time to collect on those futures contracts, there was no where to go with the oil.

http://www.energytribune.com/articles.cfm?aid=1081

[mikeb]

They have rented tankers that are sitting out on the oceans full of oil, waiting for the price to rise LOL..... lets see, oil was about $40.50 this morning and now it's $36.50. A tanker holds (exxon valdez in this case) about 1.5 million gallons, so they lost about $6 million per tanker today. Also, the tankers cost about $36 million a year, so it's costing them about $3 million a month to park that oil. Leave it out there long enough and begin to lose your ass.

[Mustangman_2000]

Regardless of what you just posted, gas went up $.11 over night in my area.

[8mpg]

Simple math AL P. $36 a barrel x 10,000,000 barrels is less profitable than $72 a barrel x 5,000,000 barrels. Why sell twice as much oil for the same money? Plus thier reserves will last longer.

Yeah..but when you are selling 0 b/d...you are losing $36million/day.

Why do you think the Saudis and the Russians are pulling away from OPEC? They would rather keep selling a product regardless of the price. You cut back 2 million barrels a day x 72 million per day. Call me crazy, Id rather make that extra 72million per day than not.

[Cooter]

I paid $1.95 for diesel tonight :eek:

[Muffrazr]

I paid $1.95 for diesel tonight :eek:



Fucking score!!!!! Hookers and booze on big balling Cooter. He's got the extra dough.

That's how cheap it was when I first started driving a big truck in Indianapolis.

[5.0_CJ]

They production in half and oil will go back to $100 + a barrel.

they only control 37% of reserves, and saudi and russia are not on board with them this time.

[fast83]

its up .15 in my area
averages 1.45-1.59 around here

[Tx Redneck]

FWIW, there's a Valero here in Garland between Ave B and Ave D w/ reg. for 1.39

[AL P]

Simple math AL P. $36 a barrel x 10,000,000 barrels is less profitable than $72 a barrel x 5,000,000 barrels. Why sell twice as much oil for the same money? Plus thier reserves will last longer.

You are forgetting how OPEC works. As I said, if one country cuts production another will just supply the oil. A good example is Saudi Arabia and Iran. They don't care for each other because the Saudis are Sunni and the Iranians are Shiites. If Saudi Arabia won't sell us oil at $35 then Iran definitely will because they need the money and they don't mind fucking the Sunnis over, especially if they can make money while doing it. What I am saying is the there is no monopoly on oil supply, its a free market and the price is what it is.

[White trash wagon]

You are forgetting how OPEC works. As I said, if one country cuts production another will just supply the oil. A good example is Saudi Arabia and Iran. They don't care for each other because the Saudis are Sunni and the Iranians are Shiites. If Saudi Arabia won't sell us oil at $35 then Iran definitely will because they need the money and they don't mind fucking the Sunnis over, especially if they can make money while doing it. What I am saying is the there is no monopoly on oil supply, its a free market and the price is what it is.

Your probably right, expecting all arabs to work together as a team is unrealistic at best.

[8mpg]

Still very early in the day but:

Crude Oil
$34.53
▼1.69 4.67%
9:08 AM EST - 2008.12.19

[STANGGT40]

i noticed that several stations increased gas by about .10/gallon or so, but a few still had low prices. jacobs on 544 on the edge of murphy and plano is $1.39. i haven't seen diesel cheaper than $2.29 anywhere around me.

[Sgt Beavis]

Frankly I'm not celebrating oil prices going this low.

http://www.time.com/time/business/article/0,8599,1867105,00.html?xid=rss-topstories


Texas Braces for an Oil Bust

As Texans prepare for the holidays, many are thankful that the state has so far dodged the recessionary bullet. With an unemployment rate of 5.6%, well below the 6.7% national rate, the Lone Star State continues to add jobs — 230,000 for the last 12 months as of the end of October. And while sales tax receipts, a major source of revenue for state and local government, are no longer growing at double-digit rates, they were still up almost 5% in November over the same time last year. Perhaps the best holiday news for Texans, who see long distance drives as a way of life, is that gas is down to $1.35 a gallon in many parts of the state. But that happy fact may be the harbinger of tough economic times in 2009 for the Oil Patch.

The oil and gas industry accounts for almost 16% of the Texas gross domestic product, double what it was five years ago, and that means any slowdown in that sector will have a ripple effect on the state's overall economy. "There are signs of a slowdown," says Amarillo energy economist Karr Ingham said. "The jury is still out on whether it become a bust."

Oil prices began to fall in late summer, after gas topped $4 a gallon, and the drumbeat of bad economic news and the global slowdown has sent prices ever lower. "Prices got to an insane level," Texas economist M. Ray Perryman says, "but they are equally insane now." With the price of a barrel of oil hovering in the $45 range and natural gas cut in half from a high of $14 per thousand cubic feet, the domestic energy sector is now at a critical "tipping point," Perryman says. If prices dip lower, the pace of the slowdown will quicken as domestic oil and gas fields that demand expensive high-technology drilling methods will be shut, he adds.

Thanks to those high oil and gas prices earlier this year, the state of Texas raked in $363 million in oil production taxes in just the last quarter of fiscal 2008, 36% more than the same quarter a year ago, and $777 million in gas production taxes, up 55% over the same quarter a year ago. But the numbers are now beginning to tell a different tale. While natural gas production taxes are up 56% for the first quarter of fiscal 2009, oil production taxes have slipped from the 72% increase seen in fiscal 2008, to a 36% increase in the first quarter, according to the Texas State Comptroller. (The state levies a 7.5% severance tax on every barrel of oil or cubic foot of gas taken out of the ground.)

Unlike the 1980s when oil fell to eight bucks a barrel, Texas is not as dependent on its energy industry, so the state "should have more resistance to, but not immunity from, recessionary conditions," according to State Comptroller Susan Combs. When the legislature convenes for its biennial session in January, thanks in part to last year's booming oil and gas revenues, Texas will have a big surplus, only one of nine states not in the red.

But that could soon change as the economics turn dark for the energy sector. High prices bankroll high cost production and fund technology improvements that make hard-to-reach minerals accessible, while low prices mean wells with high production costs are shut in. The threshold for oil operations expansions is a price around $50 a barrel, according to the comptroller. "This constant rollercoaster [in prices] is something the industry is really getting sick of," Ingham says.(Read "Web-Savvy Homeowners vs. Landmen")

Falling prices are only the number two concern on the worry list of 21% of chief financial officers at U.S. oil and gas companies, according to a survey by BDO Seidman, an accounting and consulting firm. The number one concern of 57% of the CFOs was access to capital. While the industry is not as capital intensive as it once was, Perryman says, it is still intertwined with the health of the financial system. However, in Amarillo, where the energy sector is about 25% of the economy, the talk around the coffee shop is still dominated by the price of a barrel of oil, Ingham says. The view from Amarillo is that the economy would be much better off with "some kind of stability in the energy markets," Ingham says, "but so far no one has figured out how to do that."

[8mpg]

i noticed that several stations increased gas by about .10/gallon or so, but a few still had low prices. jacobs on 544 on the edge of murphy and plano is $1.39. i haven't seen diesel cheaper than $2.29 anywhere around me.

In my neck of the woods, gas jumped $.10 on Wednesday and was back down $.07 Thursday. Im sure it will be back to $1.39 again today

[Cooter]

i noticed that several stations increased gas by about .10/gallon or so, but a few still had low prices. jacobs on 544 on the edge of murphy and plano is $1.39. i haven't seen diesel cheaper than $2.29 anywhere around me.

in Houston proper or north of, it's $2.29-2.59

but in little ol' Alvin, it's $1.95-2.22

[STANGGT40]

in Houston proper or north of, it's $2.29-2.59

but in little ol' Alvin, it's $1.95-2.22

those prices haven't made it here yet...possibly pretty soon, though.

[fitzwell]

You are forgetting how OPEC works. As I said, if one country cuts production another will just supply the oil. A good example is Saudi Arabia and Iran. They don't care for each other because the Saudis are Sunni and the Iranians are Shiites. If Saudi Arabia won't sell us oil at $35 then Iran definitely will because they need the money and they don't mind fucking the Sunnis over, especially if they can make money while doing it. What I am saying is the there is no monopoly on oil supply, its a free market and the price is what it is.

Bingo! Once again, Al sums it up.



QT & Racetrak in Benbrook were both at 1.29 last week, up to 1.39 as of yesterday.

[IHaveAMustang]

Anyone know what's going on with Fuel prices? Is that crap over in Israel/Gaza screwing our prices up?

Was 1.38 on Sunday...now 1.55 by my work...

[mustangguy289]

Anyone know what's going on with Fuel prices? Is that crap over in Israel/Gaza screwing our prices up?

Was 1.38 on Sunday...now 1.55 by my work...

Oil is still in the 40 dollar range and this is futures so it should not be affecting the prices of Gas yet.

I noticed it too on my way to work this morning.

[midniteblue5.0]

am going to say goodbye to $40 fill ups...:disappointed:

[TexasDevilDog]

Anyone know what's going on with Fuel prices? Is that crap over in Israel/Gaza screwing our prices up?

Was 1.38 on Sunday...now 1.55 by my work...

Iran wants the oil producing countries to cut off oil to supporters of Isreal.

[mikeb]

I think it's rising on speculation on what may happen, not on what has happened. Sooner or later that old supply and demand thing will rear its head again, and prices will go back down.

[Sgt Beavis]

Oil is still in the 40 dollar range and this is futures so it should not be affecting the prices of Gas yet.

I noticed it too on my way to work this morning.

Gasoline Wholesale prices are also being bid up. Up 6.66 cents today alone.

It is all speculation. The only excuse I've been hearing is the whole Gaza mess which is a load of bullshit.

Can anyone guess about how much oil we get from Israel/Palastine/Gaza? I can tell you, with great certainty, that is is is exactly ZERO%....

Fuckin' speculators should be shot. Our gasoline and oil stockpiles are still climbing, we have full oil tankers sitting in the gulf because the spot price is too low, and they keep bigging up futures.

Fuckin' retarded. Another fuckin' bubble.

But on the bright side, high oil prices are good for the Texas economy in general..