Oil poised for another dramatic drop? - DFWstangs Forums
 
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post #1 of 32 (permalink) Old 02-12-2009, 12:55 PM Thread Starter
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Oil poised for another dramatic drop?

I've been watching oil prices and futures, and here is what I see.

Oil traders have been hoarding oil because the future price of it is higher than what they can get for it today ("contango"). However, those higher futures are about to expire, and the futures following the high ones are lower, so some of that oil is going to come to market. And of course there are all of those tankers floating around out on the ocean storing oil, and cushing, ok (oil trading hub) is literally afloat with oil. Since gas demand is down the US has steadily been building an inventory of oil, and I suspect this will continue until the US economy picks back up. The oil production cuts in the middle east have done nothing.

So.... are we about to see oil take a dramatic price drop?
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post #2 of 32 (permalink) Old 02-12-2009, 01:01 PM
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Dont know how much more dramatic it can get... $34/bbl is already VERY low. Damn OPEC can keep cutting and I dont see the price going up...but I dont see any drastic drop in price. Damn gasoline needs to be at $.99/gal where it should be with $34/bbl

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post #3 of 32 (permalink) Old 02-12-2009, 01:01 PM
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I hope not. I know drillers are taking a bath right now.
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post #4 of 32 (permalink) Old 02-12-2009, 01:02 PM
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I hope not. I know drillers are taking a bath right now.
taking a bath or not making as much money, but still making it? I find it funny when a company doesnt make projected profits and calls it a loss. They still pull through with a profit...but they call it a loss and the stock market goes down even more.

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post #5 of 32 (permalink) Old 02-12-2009, 01:08 PM
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taking a bath or not making as much money, but still making it? I find it funny when a company doesnt make projected profits and calls it a loss. They still pull through with a profit...but they call it a loss and the stock market goes down even more.
layoffs. When the number of working rigs is cut in half - that's not good.
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post #6 of 32 (permalink) Old 02-12-2009, 01:09 PM
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What has become of the Strategic Petroleum Reserve?
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post #7 of 32 (permalink) Old 02-12-2009, 01:09 PM
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I really don't understand why gasoline has gone up 30% in the last two weeks. But it's still cheap I guess.
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post #8 of 32 (permalink) Old 02-12-2009, 01:14 PM
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layoffs. When the number of working rigs is cut in half - that's not good.
All ready happening, I work offshore with a drilling company as there Safety Officer, HLO, and Medic. Fortunately the company I work for has not had to do any as far as I know. But, coming back to the Helipad this last hitch I noticed a drastic drop of cars in the parking lot.
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post #9 of 32 (permalink) Old 02-12-2009, 02:00 PM
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Dont get me started on this subject. I see layoffs coming up real quick here. Everyone in this field is hurting right now.

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post #10 of 32 (permalink) Old 02-12-2009, 02:00 PM
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All ready happening, I work offshore with a drilling company as there Safety Officer, HLO, and Medic. Fortunately the company I work for has not had to do any as far as I know. But, coming back to the Helipad this last hitch I noticed a drastic drop of cars in the parking lot.
Having oil workers layed off is much better than the whole country gettings raped by high oil prices and sending a large chunk of our money overseas.

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post #11 of 32 (permalink) Old 02-12-2009, 02:02 PM
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Why has gas been rising the last month or so?
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post #12 of 32 (permalink) Old 02-12-2009, 02:03 PM
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Dont get me started on this subject. I see layoffs coming up real quick here. Everyone in this field is hurting right now.
Everyone in the whole damn country is hurting why should we save oil when oil screwed us all of the past cpl of yrs?
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post #13 of 32 (permalink) Old 02-12-2009, 02:05 PM
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Everyone in the whole damn country is hurting why should we save oil when oil screwed us all of the past cpl of yrs?
Oil didnt screw you the economy screwed you LOL. Hate to break it to you but this is a essential that we need on a day to day basis.

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post #14 of 32 (permalink) Old 02-12-2009, 02:16 PM
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Oil didnt screw you the economy screwed you LOL. Hate to break it to you but this is a essential that we need on a day to day basis.
So is money. Which is part of the reason the economy is so bad.

A lot of people said hmmm do i put gas in my care to go to work or pay all the bills. Along with giving up buying extras that they could no longer afford. This put many companies out of business. I know we need oil day to day. They screwed themselves when they allowed it to get so high.

Everyone has to fend for themselves right now. Even myself at my job. If it weren't for commodities coming down we would have been shut down by now. We were able to save enough due to commodities coming down to keep jobs around here.

Its a losing situation for a lot of poeple oil workers included.
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post #15 of 32 (permalink) Old 02-12-2009, 02:26 PM
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I've been watching oil prices and futures, and here is what I see.

Oil traders have been hoarding oil because the future price of it is higher than what they can get for it today ("contango"). However, those higher futures are about to expire, and the futures following the high ones are lower, so some of that oil is going to come to market. And of course there are all of those tankers floating around out on the ocean storing oil, and cushing, ok (oil trading hub) is literally afloat with oil. Since gas demand is down the US has steadily been building an inventory of oil, and I suspect this will continue until the US economy picks back up. The oil production cuts in the middle east have done nothing.

So.... are we about to see oil take a dramatic price drop?
You didn't just hit the nail on the head, you hammered it with a big ole sledge..

http://www.chron.com/disp/story.mpl/...s/6258519.html

There is a whole herd of oil tankers filled to the brim with crude just sitting parked in the Gulf of Mexico. Our crude storage is nearly at capacity. Middle eastern countries are leasing more and more OLD oil tankers to store their production.

The 1st bubble burst and got us down to 40 but these jackasses didn't learn their lesson. They tried to drive the price back up again and it is going to burst a 2nd time in less than a year. I'm predicting oil will hit $20. That is going to kick Texas and Louisiana right in the balls..

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post #16 of 32 (permalink) Old 02-12-2009, 03:34 PM
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You didn't just hit the nail on the head, you hammered it with a big ole sledge..

http://www.chron.com/disp/story.mpl/...s/6258519.html

There is a whole herd of oil tankers filled to the brim with crude just sitting parked in the Gulf of Mexico. Our crude storage is nearly at capacity. Middle eastern countries are leasing more and more OLD oil tankers to store their production.

The 1st bubble burst and got us down to 40 but these jackasses didn't learn their lesson. They tried to drive the price back up again and it is going to burst a 2nd time in less than a year. I'm predicting oil will hit $20. That is going to kick Texas and Louisiana right in the balls..
It won't be good for Texas, but we will survive it just fine. Remember 1999? Oil touched $10 back then, and hovered around the $13/$14 mark all year. $1 premium FTW!
Seriously, it would be a perfect time to tell the middle east to stick it off in their collective asses. Sever that tie when oil is cheap, and let it go up on our terms here at home.

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post #17 of 32 (permalink) Old 02-12-2009, 03:42 PM
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Oil didnt screw you the economy screwed you LOL. Hate to break it to you but this is a essential that we need on a day to day basis.
yeah...sure did. That $140/bbl was our economy The oil consumption did come down a bit but not that much. The over inflated prices during the summer were stemmed from complete bullshit in my mind. Lots of speculation and people sitting back thinking of ways to make more money and fuck everyone else in the world. Our world oil consumption didnt fall 65% over the last couple months like oil price did.

Oil companies soaked up their cash for MONTHS while we suffered...so fuck them. THey can take their low oil prices and stick it up their ass. They will still balance out way ahead.

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post #18 of 32 (permalink) Old 02-13-2009, 07:39 AM
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yeah...sure did. That $140/bbl was our economy The oil consumption did come down a bit but not that much. The over inflated prices during the summer were stemmed from complete bullshit in my mind. Lots of speculation and people sitting back thinking of ways to make more money and fuck everyone else in the world. Our world oil consumption didnt fall 65% over the last couple months like oil price did.

Oil companies soaked up their cash for months while we suffered...so fuck them. They can take their low oil prices and stick it up their ass. They will still balance out way ahead.
lmfao ok!

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post #19 of 32 (permalink) Old 02-13-2009, 07:45 AM
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I really don't understand why gasoline has gone up 30% in the last two weeks. But it's still cheap I guess.

that's what I've been curious about, 93 oct been around $2.01-2.12!

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post #20 of 32 (permalink) Old 02-13-2009, 07:47 AM
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Everyone in the whole damn country is hurting why should we save oil when oil screwed us all of the past cpl of yrs?
No sympathy here. I hate anyone getting laid off but a few roughnecks compared to thousands of factory workers getting laid off just doesn't have an equal state of urgency. If the oil industry didn't save some of the shitpot full of money they've had the luxery of over the last few years....they should have.

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post #21 of 32 (permalink) Old 02-13-2009, 08:12 AM
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I really don't understand why gasoline has gone up 30% in the last two weeks. But it's still cheap I guess.
Just these assholes controlling the supply and production of gas. If they started producing at 100% capacity right now, gas would be $.50/gal.

Want to see the economy come exploding back? Make that happen.

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post #22 of 32 (permalink) Old 02-13-2009, 09:09 AM
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Oil is a cyclical business. I'm not sure why anyone is suprised. Bring on the oil supply glut.
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post #23 of 32 (permalink) Old 02-14-2009, 09:15 AM
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No sympathy here. I hate anyone getting laid off but a few roughnecks compared to thousands of factory workers getting laid off just doesn't have an equal state of urgency. If the oil industry didn't save some of the shitpot full of money they've had the luxery of over the last few years....they should have.
Hey boss it's not just a few Rough necks, There is more the Oil industry then Roughnecks and Roustabouts. You have several different kind of Engineer's, Geologists amongst other professional trades out there.
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post #24 of 32 (permalink) Old 02-14-2009, 12:40 PM
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Not to mention that the oil industry is what has acted somewhat like barrier for the recession hitting this area. Oil comes crashing down and we go with it.

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post #25 of 32 (permalink) Old 02-14-2009, 02:20 PM
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My wife works for a refiner, and their profits (margins) are much better with oil at $38 than it was @ $120.

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post #26 of 32 (permalink) Old 02-14-2009, 02:48 PM
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my wife works for a driller - lots of folks in the corporate office gonna get laid off. Not just executive fat cats - billing clerks, accountants etc.... just everyday people who get by on a modest wage.
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post #27 of 32 (permalink) Old 02-15-2009, 09:36 AM
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my wife works for a driller - lots of folks in the corporate office gonna get laid off. Not just executive fat cats - billing clerks, accountants etc.... just everyday people who get by on a modest wage.
I work at a furniture manufacture.. everyday people are getting laid off there too. Its not just the oil companies.
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post #28 of 32 (permalink) Old 02-17-2009, 01:10 PM
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Yeah for the stimulus package... oil and stocks are down...

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post #29 of 32 (permalink) Old 02-17-2009, 01:12 PM
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lol at some of the statements being tossed around in this thread.

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post #30 of 32 (permalink) Old 02-17-2009, 01:14 PM
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Oil is a cyclical business. I'm not sure why anyone is suprised. Bring on the oil supply glut.
So what do you think of DRYS being under 4.00 right now...oil going to stay down for awhile?
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post #31 of 32 (permalink) Old 02-17-2009, 01:50 PM
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I really don't understand why gasoline has gone up 30% in the last two weeks. But it's still cheap I guess.
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Why has gas been rising the last month or so?
Because we'd buy the shit out of it and jack the price of oil right the fuck back up! Take a few cent climb or get ass-raped again.
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post #32 of 32 (permalink) Old 02-17-2009, 02:18 PM
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I read an article about American oil being cheaper than foreign crude but we dont have the pipeline to get it to the refineries, so we are paying more to refine it. What a crock of shit

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