Topic: Crude Oil drops below $100 - page 3. (Read 1588 times)

That is why I always advocating for States not to depend on crude oil only. Now this will affect these countries that are depending only on crude oil because they take crude oil as their income revenue. Me, I want crude oil to be drastically come to the lowest because as the Oil is going up, it is the poor masses that suffer for it. Nations that depend on crude oil have not utilized the money for national development, mostly the African countries, Nigeria in particular.


As for the gas price in 2017 to 2018, the price of gas 0.80$ in Nigeria but as it is now of 18th of October, 2022, gas price is $3.44 in my location. Therefore if crude oil price go down there is probability that gas price will also come down. Retailers are also using the flood disaster to even increase the price of gas.

Why should I want the oil prices to rise? Here in India, we import more than 85% of the crude oil that we consume and at this point we are not just suffering from sky high oil prices, but also from the devaluation of the Indian Rupee (went down by more than 10% since the start of this year). What that means is that the crude oil trading at $90 per barrel now is equivalent to a price of $100 per barrel (due to the weakening of the Rupee). The situation is not sustainable in the long run. The government is under a lot of pressure.  

China is the world's 4th biggest oil producer, more than Canada, Irak or UAE.
Yes, they import a lot of more than they produce (60/40 ratio) but they do have oil, at least more than Europe overall.


Still being surprised by reality?
That Ukraine wasn't conquered in April?
That Russia's 1.7 trillion surpluses (rubles ) in 6 months evaporated in just 3 months to 60 billion?
That Europe gas deposits are 92% full and enough gas not to "freeze" during a warmer than usual winter as it's being announced?
That miraculously despite stupid claims for bankruptcy and business closing Europe has posted record employment levels?
That despite this freezing winter, we are already booked 80% for Xmas and new years' eve in hotels all across the alps?
That Europe miraculously still has sunflower oil?
That we haven't started to use donkey carts as you predicted?

You see, your problem in analyzing things is that you want to find the facts that are allowing you to arrive at the conclusion you want, not how every normal person would think, analyzing reality and seeing what comes out of there!

The driving season is over in the US, and so is it in Europe, that alone is a 15% drop in diesel/benzin consumption, so it's agriculture, so its construction, oil production is the same while everyone is trying to drive less to avoid spending money because of uncertainties, and in what universe when there is less demand for oil does it jump to 300? In the same weird universe where Iran is a superpower!

Oh, and you're not going to like the prices of natural gas either, futures just took a -13.262   dump!
Pretty hard times to be an EU-US hater!

And you also wanted oil to rise, right?
But no, it has not grown and WILL NOT GROW in price. As you very accurately noted - "OPEC's refusal from previously increased production, and a reduction of 1.2 million barrels / day" SHOULD lead to some panic, an increase in futures ... But nothing happened, except for semi-daily "small tantrums", after why oil went into them, of course, Urals "showed an excellent increase in negative price changes" (this is me reporting the news in Russian)
Let's put aside your desire to "at least somehow help Russia", and try to understand what is really happening? Don't you want? Is it true that fantasies and propaganda won't work? I, respecting your right, will leave the right to choose the answer for you! And if you don't want to take part in the assessment of REALITY, I will do it myself, it's not difficult if you live in reality ...

And just in case, I’ll leave a graph from the real world and not the fantasies of Russian propaganda:

True....but that's always been true, has it not?  Oil and politics have been interlocked for as long as I've been aware of the two, and I'm 100% sure it's always been the case.  But what I'm not certain of is whether the world weaning itself off of oil is going to improve the situation, because energy suppliers of all types (including oil) have--and have always had--extreme levels of power and influence, and those powers are most likely figuring out how to keep their wealth and power if X becomes the new fuel standard, where X could be hydrogen, vegetable oil, solar, whatever.

I know this thread is somewhat old, but gas prices were trending downward for a while there, and now they've spiked.  If you live in an urban area, I'd consider going without an automobile if you can.  It's not only environmentally friendly but it'll have an impact on your wallet that you'll see pretty much as soon as you unregister your car/truck/whatever.  It costs so much to own and operate even the smallest of cars it's ridiculous.

China is the first reference for higher prices, giant country with little or no oil.  They have ongoing problems with the pandemic and their solution is reducing their GDP quite drastically hence lower oil demand.  OPEC believes they are quite justified in their restriction to production likely because of this, inflation of weak currency standards is not their concern as the oil will always go to the highest bidder.
   125 will happen when full demand is in progress, where as present we are adjusting world GDP lower.

Don't get ahead of yourself; we still have a long way ahead and, unfortunately, it's still very possible. It's been extremely volatile and gas prices aren't going to change anytime soon, especially with the also volatile USD/EUR exchange rate, which is severely affecting the final purchase price of oil in Europe.

If Brent oil possibly fell below $85 per barrel, then we could perhaps start seeing a difference at the gas stations, but it's so volatile that chances are, these reductions will never be seen by the final consumer. It will have to stabilise at a way lower price than the current one, which is trending just above $91, in order to make any significant difference.

Surprised to see the Brent Crude prices hovering around the $90-92 level. After the announcement from OPEC, I thought that the crude prices would easily rally to $120-125 levels. And also, the shale oil output in United States has remained flat for the last many months (total US oil output has remained flat at 12.1 million barrels per day). There can be only one conclusion here. The demand has dropped. But I would be surprised if that happened, because COVID lockdowns are over in China and therefore the demand should actually increase.

I would venture to say the same is true everywhere as greed is universal, where I am residing this is a very common occurrence, so if for example the government in turn decides to create a new tax, businesses immediately raise their prices to their products to pass that cost to the consumers, but even if eventually the tax idea is scratched there is not a decrease in the price at all, so it does not surprise me we are seeing the same with oil all over the world.

Every commodity can double in price quite easily, unless we are also prepared to declare farmers as the enemy it might be more productive to ask why this can happen and how to prevent it.
  We dont want to go down the road of Venezuela which seized the assets of oil companies and reduced their enterprise and innovation to near zero, impoverishing the entire country instead of improving it.    Supply vs demand, its the simplest thing there is no evil in the basic balance that requires production must also meet the demands of any country for its energy.
   We've known energy security is a problem in Europe for 30 years, Germany mistakenly or  mindlessly leant on Russia for an answer to their deficits and it was a mistake to be led by cheap prices;  correct the mistake move on and improve is all we can do.

It's nice to see oil prices continuing to trend down, as they are funding some pretty despotic regimes right now and the sooner the world is free of oil the better the environment is likely to end up. If you think about Saudi Arabia for example, it has been ruled by one family and essentially cowed by the religion that they support for many decades. That money is able to buy a lot of oppression and we see it even start to strike overseas like the murder of the journalist in the Saudi Embassy in Turkey. While the resources used for solar engineering can be a bit dirty to extract, in the long run they should pay for themselves much more economically than the equivalent oil extraction and last much longer too.

Even when crude oil had plummeted below $90, we still saw insignificant reductions at gas stations. Not only is this situation bad, but speculation makes it worse than it actually is. I don't know if the same situation occurs in other countries too, but here at least, inflation is to some degree speculative. We're talking about an energy crisis, but in the meantime, electricity providers are soaring in profit. Don't get me started on oil companies.

Volatility is a huge issue. You can't plan anything in advance. Gas, electricity, and groceries constantly change prices, and it's usually for the worse. Our quality of life is worsening, and so is our mental health. We're headed towards the great recession, this is only the beginning. This will be a harsh winter.

The funny thing is, it’s around 90's right now, at around 92-93 range give or take, but it was somewhere between 60-130 all year, that’s a WILD difference. Normally we do not have that kind of difference in a single year, get it at 60, increase it to 130, and drop it to 90 doesn't happen all too often.

Sure, it does happen time to time when there is a big issue, I do not know how it was in 2008 for example when the crash happened, but I know that it’s not going to be that easy for anyone to accept the current situation that easily. You can't make a plan with oil prices like this, because you do not know how much you will pay for it next time you buy it.

Now there will be a huge number of attempts to destabilize the oil market. The reasons are trivial - one terrorist country not only loses income, but also loses influence in some countries where the influence of the terrorist country is extremely necessary. Cancellation of OPEC's additional 2 million, one such attempt. Yes, you will not argue, now it will be difficult in the market. But all this is being done only in order to lift the embargo on Russian oil supplies to the EU, which is introduced from January 1, 2023, and this is just 3 months later. Nordic pots blown, EU refuses oil ? How can a totalitarian-terrorist regime exist without a lot of money? No, that's why they will use both conditionally legal and illegal measures to destabilize the oil market.
For example, I’ll even assume that from now until about the middle of next year, there will be terrorist attacks in oil supply countries, oil tankers, and other elements of the infrastructure intended for pumping oil ...

This will certainly not only cause trouble for Europe but trouble for the whole world again. It is difficult to understand why OPEC + made this decision, in the end national interests still come first, not the general situation of the world. I don't think OPEC+ will want oil prices to fall below $90 or below.

Although the world oil price has decreased in the past 2 months, actually in my hometown I have not seen a decrease and today I am even more surprised when gas stations in my area are closed because there is no gas for sale. This is the first time this has happened in my area, although when oil prices hit record highs in March/April, we still had enough supply.

If seen, the most significant impact of oil is psychological. As consumers become more aware of their purchasing decisions, experts believe that oil companies may experience a serious crisis of confidence as people begin to make choices based on factors other than just fuel economy.

As a result of the drop in oil, you can probably expect to see lower gas prices at your local gas station. In addition, there is renewed confidence in the economy as a whole, which will lead some experts to predict a surge in small business investment, which could also lead to more hiring opportunities in the months ahead.

Many years back way before they printed 25% more dollars into existance and so on, the members of OPEC basically said they were happy with oil at $100.  They werent kidding around it appears, that is their rough guide for where they want oil to be at some kind of minimum for years.   When we slip below 80 heading for 60 they start to lose the balance to their fiscal budgets.    All of these questions will alter in future without a doubt as I know Saudi Arabia especially has massive growth in its population, its entirely different to alot of western countries with sedate or quite severe population decline in some cases.  The demographics or age profile of the country altering changes alot of things, Saudi Arabia moves away from oil apparently they dont intend to expand their production seems like just this maintained $100 oil.
  Iraq is the best chance for large oil increased production in the middle east, its been a wasteland for decades in investment terms.   They could relieve alot of pressure on demand if they uncover and develop a new large oil field, it'd still  take near to 10 years I guess.

That is great news *sarcasm*. OPEC is basically cutting down on oil production, leading to massive price increases. I honestly at least expected Brent oil to stay below $90 a barrel, which is still expensive but a little more sustainable at least. If these new prices remain, they will trigger a new round of price increases in every day's goods, sending inflation to the moon.

Things are not looking good at all. And winter hasn't even started.

The US is definitely not happy about this, they expected the OPEC to at least keep things as they were as this will keep the status quo when it comes to the benefits Russia can get from selling their oil, but with this cut then Russia will definitely benefit, not only that with raising oil prices this will mean more inflation and greater logistic problems, so this raises the chances of the most powerful economies of the world to enter a recession and complicate matters even more for Europe.

My country targets oil prices to be around $110, if it's now below $100 then there's a lot of profit or money to be saved so I'm hoping it can be used for health subsidies which are currently reportedly running a very high deficit.