Topic: Crude Oil drops below $100 - page 6. (Read 1588 times)
Interesting thing to see, oil does not have any particular reason other than being summer, so it may be just an seasonal effect that does not matter for the long term forecast. However, it is clear that there are years of underinvestment in oil production ant the ESG tendency is not helping to raise production. We are maybe trying to be green all the sudden.
There were plans to release oil from america's strategic petroleum reserves in an effort to reduces gas prices. It is possible that these initiatives are finally manifesting themselves in market prices.
Biden proposed suspending the federal gas tax which is an excellent measure I support. Unfortunately, it seems the proposal was buried and might never see the light of day again.
2022 is an election year for the USA. All types of craziness occur in the year and a half leading up to elections.
I think Osama Bin Laden was assassinated prior to previous elections. General Soleimani may have been as well.
Pre election stunts and gimmicks can reach levels of epic proportions. Politicians definitely want the public feeling better gas prices before heading to voting booths, I would guess.
Biden proposed suspending the federal gas tax which is an excellent measure I support. Unfortunately, it seems the proposal was buried and might never see the light of day again.
2022 is an election year for the USA. All types of craziness occur in the year and a half leading up to elections.
I think Osama Bin Laden was assassinated prior to previous elections. General Soleimani may have been as well.
Pre election stunts and gimmicks can reach levels of epic proportions. Politicians definitely want the public feeling better gas prices before heading to voting booths, I would guess.
Crude oil has dropped below $100, the first time in months after touching the highest level since 2009, at $130/barrel. Oil prices have dropped the past two months, with both Brent and WTI Crude trending below the $100 level ($91 for WTI and $97 for Brent oil). According to Oilprices.com, consumers have already seen a slight relief in gas prices, dropping from the historic average of $5/gallon down to $4.16.
Haven't checked in other European countries, but in Greece it has only dropped a few cents till now, I'm expecting it to drop within the next week though (from €2.45 to €2.20 in my area at least). It is believed that oil could fall below $90 if inflation persists, something which is highly unlikely to change since it simply keeps rising, driving leading to large price increases in basic necessary goods.
Have you seen any significant drop in gas prices in your area? Will oil drop even further, despite the ongoing war?
Haven't checked in other European countries, but in Greece it has only dropped a few cents till now, I'm expecting it to drop within the next week though (from €2.45 to €2.20 in my area at least). It is believed that oil could fall below $90 if inflation persists, something which is highly unlikely to change since it simply keeps rising, driving leading to large price increases in basic necessary goods.
Have you seen any significant drop in gas prices in your area? Will oil drop even further, despite the ongoing war?
Here in NJ ,USA
5.07 to 4.27 a gallon
and in some spots 3.95 a gallon
https://www.gasbuddy.com/gasprices/new-jersey
I feel like refineries pumped the price much more than they should have, expecting shortages. Crude went up but refined products went up more in relation and did not go down when crude fell.
You could see it in June when crude went from 120 to 104 but gas didn't budge. It was at its peak for over a month. I think it started going down maybe 2 weeks ago so it needed a whole month to react to the crude drop. It's because of taxes and the premium that refineries overcharge. They made a lot of money on these shortages and we paid for it. We still do.
You could see it in June when crude went from 120 to 104 but gas didn't budge. It was at its peak for over a month. I think it started going down maybe 2 weeks ago so it needed a whole month to react to the crude drop. It's because of taxes and the premium that refineries overcharge. They made a lot of money on these shortages and we paid for it. We still do.
Have you seen any significant drop in gas prices in your area? Will oil drop even further, despite the ongoing war?
This is great. Now people can ride on their vehicles again because many of them have been using bicycles for a while to go their work or go on some places but there are some that commutes for a while but the fair rates are also increasing. A few cents drop is still better I guess especially if you are buying more liters of oil. You can save a lot of money already as when compared to its previous price.If inflation persists then I don't think the drop of the price can continue. You said that increase in oil price can also drive the price of the food higher, so this means that this decrease of oil price can also lead for the price of the goods to get lowered? That would be great if that's how it works.
That is a bit good for the Asian countries, as inflation is sucking the life of the poor community here so now here you need to know that this can directly impact the local civilians here as maximum transports can enjoy less cost to generation power. that can be a little relief in the economic crisis especially for Pakistan as i know that 100% increase in price of the fuel how it looks like and how it destroy the local jobs and transportation so now i am expecting the decrease of the fuel prices over here and with that being said the efficient decrease in the prices of the Electricity is possible. Good time expected by me as compared to the time we are spending here.
we have also subsidized gasoline, there are about 120 Liters per month we can adquire at a very cheap price, almost symbolic
Are you rationed to the 120 litres or is that just what you can get for the discounted rate there?
Nowadays, we can buy how much fuel we want at 0,5$ /Liter, but if we want to buy gas at ridiculously low prices there is a limit of 120 Liters per month for each vehicle owner.
In some cities is easier to buy subsidized gas than others, it is a line of about 7 vehicles and you are ready to go, on the other hand, there are other ones which have a higher demand because mining opperations, so in order to access the almost free gas one needs to join a telegram Channel to receive a notification according to one's vehicle plate. As soon as the notification is sent,people get in the line to mark the vehicles which will refuel early next morning.
I thought there were spikes in prices, actually, so I'm happy to hear that they're going down. It would be good both for consumers and for ending the war, as Russia will get less money from selling oil and gas, ergo less money to shell cities of a sovereign state. I also hope that the world will finally start moving away from gas and oil as such, though, since global warming is still an alarming issue and we must do what we can to make its impact less negative. Unfortunately, the current circumstances aren't very welcoming for eco-friendly initiatives because those need long-term strategies, though, and the war is making people look for short-term things.
but it is still significantly expensive compared to where it was just over a year ago.
That's right.I'm happy to see it rolled back but still we need to get back from where it was before or even close at it even with a gain. With my calculations, we're still near half from where it is right now and from where it was a year ago.
How far would you expect it to fall though? I doubt we'll ever be back down to pandemic levels, somewhere around £1.20/€1.4/$1.4-£1.4/$1.7/€1.7 per litre would be around where I'd expect it to stabilise if there is enough supply and a dip in demand (due to the prices being high and also maybe less travelling after the summer - for the northern hemisphere at least).
Oh well, another possible turmoil that's going to make the price rise again.
The issue with Taiwan and China, although, others might not be affected by it but the close nations could be affected by it and can be said that it will be another reason for some price increase as the tension rises and demand for oil will be there again to increase.
It is believed that oil could fall below $90 if inflation persists, something which is highly unlikely to change since it simply keeps rising, driving leading to large price increases in basic necessary goods.
~snip~One hour later, and WTI dropped below $90, for the first time since February 10th.
Personally, I've cut my fuel usage up to 2/3 of what it was in the past 2 years, I've resorted to using my motorcycle, which uses half of what my car is, while due to long hours working and the less available income, I'm no longer capable of using my car for leisure purposes. Oil continues to tumble, the only positive thing happening with all these excessive prices.
P.S Great website, provides great inside on fuel prices
By the way, reducing the consumption of gasoline / diesel fuel is a good step both to reduce the burden on the family budget and to help the global crisis. I recently sold my 4 liter Toyota Prado, I am going to buy a hybrid car for long trips, and an electric car for city trips, exclusively for the home-office-shop-home cycle, which is 90% of the total trips. In Ukraine, gasoline / diesel fuel has also skyrocketed in price, it's time to reduce dependence on such a resource
The thing is.... large oil producers know that inflated prices will lead to demand slowdowns by the consumers and this will hurt their profits in the long-run. The consumer will be unable to pay the huge price increases and the direct result will be a cut back on travels or a shift to electric cars.
So, they just increase production to prevent slowdowns and to stimulate the demand side of the market and people still continue as usual. These rich b@stards just know how to manipulate the markets and the governments work with them, because they get a lot of tax levies in return.
So, they just increase production to prevent slowdowns and to stimulate the demand side of the market and people still continue as usual. These rich b@stards just know how to manipulate the markets and the governments work with them, because they get a lot of tax levies in return.
It is believed that oil could fall below $90 if inflation persists, something which is highly unlikely to change since it simply keeps rising, driving leading to large price increases in basic necessary goods.
~snip~One hour later, and WTI dropped below $90, for the first time since February 10th.
Personally, I've cut my fuel usage up to 2/3 of what it was in the past 2 years, I've resorted to using my motorcycle, which uses half of what my car is, while due to long hours working and the less available income, I'm no longer capable of using my car for leisure purposes. Oil continues to tumble, the only positive thing happening with all these excessive prices.
P.S Great website, provides great inside on fuel prices
By the way, reducing the consumption of gasoline / diesel fuel is a good step both to reduce the burden on the family budget and to help the global crisis. I recently sold my 4 liter Toyota Prado, I am going to buy a hybrid car for long trips, and an electric car for city trips, exclusively for the home-office-shop-home cycle, which is 90% of the total trips. In Ukraine, gasoline / diesel fuel has also skyrocketed in price, it's time to reduce dependence on such a resource
It is believed that oil could fall below $90 if inflation persists, something which is highly unlikely to change since it simply keeps rising, driving leading to large price increases in basic necessary goods.
~snip~One hour later, and WTI dropped below $90, for the first time since February 10th.
Personally, I've cut my fuel usage up to 2/3 of what it was in the past 2 years, I've resorted to using my motorcycle, which uses half of what my car is, while due to long hours working and the less available income, I'm no longer capable of using my car for leisure purposes. Oil continues to tumble, the only positive thing happening with all these excessive prices.
P.S Great website, provides great inside on fuel prices
The price of crude oil has dropped down due to the fear of recession in the world. In my country petroleum and gasoline price still remains the same because our government is looting from the crude oils funds. My country has never reduced the price of petroleum product of gasoline instead they always increase the price time to time for their own benefit.
Crude oil is my country major export commodity, with the declination in crude oil price this might lead to more inflation and hardship in the country.
Crude oil is my country major export commodity, with the declination in crude oil price this might lead to more inflation and hardship in the country.
Urals $93.31 per barrel everything depends only on ruZZian oil 
Yeah, $74.74 as we speak, and that's the price that some pay, most buy it well under the price for hefty discounts directly at the source.So much for the billions in extra profits, they are on the same level as 2018 now.
And this is provided that the flywheel of solutions and problems in the gas / oil market has just started!
For example, today Russia has already begun to reduce gas production. It seems to be something like this? But this is the first step towards conservation, and for Russia this actually means the closure of gas wells, since reactivation, technologically, is not available to Russia. Now they have started stupidly burning gas, then - conservation ...
Source https://lenta.ru/news/2022/08/04/ne_dostavajsya_zhe/
The same goes for oil
Haven't checked in other European countries, but in Greece it has only dropped a few cents till now, I'm expecting it to drop within the next week though (from €2.45 to €2.20 in my area at least).
Gasoline is down at about 15 Eurocents and diesel at around 10 Eurocents here.
You have to take into account how much the price is the oil, how much are taxes, and how much the other expenditure of the refineries and petrol stations and the usual VAT. Because if out of those 2.45 50% are taxes there is no way even with oil at zero for gas to be under 1.40-1.60 with all costs. Just checked for Greece and the cheapest gas ever was at 1.28, during the lockdown.
It is believed that oil could fall below $90 if inflation persists, something which is highly unlikely to change since it simply keeps rising, driving leading to large price increases in basic necessary goods.
It could fall even further and not because of inflation alone but because demand destruction starts to crawl in.
Once people are afraid of spending or can't afford to spend, there goes the demand so down with the prices but of course, it's not a complete circle until some providing the goods will go bankrupt or shutting down as they have no customers, squeezing offers and then the matter starts to get in somewhat of an equilibrium. That is if not some other shit happens somewhere in the world.
That's why things like the barrel at $300, like some doomsayers think, can't really happen because once the price hit that there will be nobody affording it, nobody buying so the prices will go themselves down, it's basic economics.
Urals $93.31 per barrel everything depends only on ruZZian oil
Yeah, $74.74 as we speak, and that's the price that some pay, most buy it well under the price for hefty discounts directly at the source.
So much for the billions in extra profits, they are on the same level as 2018 now.
LE:
One hour later, and WTI dropped below $90, for the first time since February 10th.
Urals $93.31 per barrel everything depends only on ruZZian oil
I read about the reasons for such a fall! This reason, attention - "Oil quotes are falling during trading on Wednesday evening after the release of data on energy reserves in the US and the publication of the results of the OPEC + meeting."
No, this is not even an increase in production, which is guaranteed to be, and not the EU's refusal to purchase oil from Russia, which will happen a little later.
Soon China and India will demand money from the country of the terrorist so that they pay them for taking oil that no one needs
I read about the reasons for such a fall! This reason, attention - "Oil quotes are falling during trading on Wednesday evening after the release of data on energy reserves in the US and the publication of the results of the OPEC + meeting."
No, this is not even an increase in production, which is guaranteed to be, and not the EU's refusal to purchase oil from Russia, which will happen a little later.
Soon China and India will demand money from the country of the terrorist so that they pay them for taking oil that no one needs
Gasoline prices suddenly dropped due to fears of a global recession, but I don't think this decline will last.
Organization of Petroleum Exporting Countries (OPEC) yesterday announced an increase in production to balance world demand, but with an increase of 100,000 bpd/day, this is a negligible increase and will not make too much of a difference to the current energy crisis.
Organization of Petroleum Exporting Countries (OPEC) yesterday announced an increase in production to balance world demand, but with an increase of 100,000 bpd/day, this is a negligible increase and will not make too much of a difference to the current energy crisis.
~~ however it is doubtful whether or not the price of oil will remain that low as it seems a conflict between China and Taiwan seems to be imminent and if that is the case I think the price of oil will skyrocket again.
The war is bound to happen, the US cannot defend Taiwan forever. But it won't happen soon, conflict with the US right now is not in China's favor, when its economy is somewhat slowed down because of the zero covid policy. When war breaks out, the US and its allies will impose sanctions on China and will bring their economy to a standstill. 
~~~
Have you seen any significant drop in gas prices in your area? Will oil drop even further, despite the ongoing war?
Have you seen any significant drop in gas prices in your area? Will oil drop even further, despite the ongoing war?
Here in India, we can't expect any significant drop unless the price goes below $80 per barrel. As of now, the government owned refiners such as BPCL and IOC are incurring losses close to $0.20 per liter of gasoline, because the authorities have refused to increase retail price. The cost of production remains at around $1.40 (including taxes), and they are selling it at around $1.25 per liter. The government has refused to reduce the taxes any further. Some of the losses are offset with imports of discounted crude from Russia, but it is not enough. The three government owned companies (IOC, BPCL and HP) are estimating their losses at $1.35 billion just for the first quarter of 2022-23.
We've experienced rollback after rollback of petrol prices here in our country but it is still significantly expensive compared to where it was just over a year ago. We're still sitting @ $5 a gallon even though we've already had some rollbacks in the past two weeks. Hopefully it doesn't stay at its current levels and still go down further, but the supply is still not enough to cover around the world and we all know historically that when gas prices come up, they come down so long.
It is the same story as always, if the price of oil goes up then gasoline goes up in price as well, but if the prices go down then the price remain close to the current levels and they make a fortune due to the increased margin of profits, however it is doubtful whether or not the price of oil will remain that low as it seems a conflict between China and Taiwan seems to be imminent and if that is the case I think the price of oil will skyrocket again. Jump to: