Topic: Oil Prices Slump to 11-Year Lows in Asia and Europe - page 3. (Read 4415 times)
so confused with oil price this year after slide down, today price slide up a little but other fiat currency is coming strong is different like before after oil price down other fiat currency is coming down like US dollar,euro,yuan,Etc.
You cannot keep 100x profit margins for long, be lucky if you can produce a 1.5x profit margin these days. This was just a market correction that they had it coming for almost a century.
The profit margins are insanely high for some of the producers (such as Saudi Arabia, Russia, Iraq and Iran). For this group, the cost of production is around $10 to $15 per barrel. Anything above that is profit. But for the high-cost producers such as Venezuela, Brazil, Norway and the United Kingdom, the cost of production ranges from $25 to $60 per barrel. So right now many of them are producing crude at a net loss.
Market equilibrium
Thats one of the most important concepts of economics. The market will find the mean always if left untouched.
Even with the oil cartels you cannot keep the price too high, and the more you interfere in the market, the worse the crash will be.
Demand for oil probably dropped 20 years ago, but the price didnt reflected it due to cheap money.
Folks the normal profit margin is about +50% <> +100% profit margin at best , and I think the price will remain in that range, unless they start printing again.
I think oil will rebound a little,but oil will loose his mportance with time
it is the end of some period in human history,everything has his end and new begining
it is the end of some period in human history,everything has his end and new begining
I agree that it may be the end of a period in human history. A bloody oil period that can give way to other technologies that may not start so many wars. Good riddance.
Well it still not a good news for my country. Although Oil's price has decreased, my local oil company ( pertamina ) doesn't want to decrease our fuel price because they still want to cover their loss before Oil's value changed.
But still we hope that our goverment decrease as soon as possible because life got tough but we won't tougher
But still we hope that our goverment decrease as soon as possible because life got tough but we won't tougher
While it slumps to 11 year lows in Asia and Europe, the prices of both Petrol and Diesel has increased by 20% in the Middle East due to the Saudi Arabia and Iran crisis. It's increased after such a long time, and it's kind of scary seeing the oil prices increase in oil rich countries. Along with this they've also decided to impose VAT and other taxes on the expatriates.
You cannot keep 100x profit margins for long, be lucky if you can produce a 1.5x profit margin these days. This was just a market correction that they had it coming for almost a century.
The profit margins are insanely high for some of the producers (such as Saudi Arabia, Russia, Iraq and Iran). For this group, the cost of production is around $10 to $15 per barrel. Anything above that is profit. But for the high-cost producers such as Venezuela, Brazil, Norway and the United Kingdom, the cost of production ranges from $25 to $60 per barrel. So right now many of them are producing crude at a net loss.
You cannot keep 100x profit margins for long, be lucky if you can produce a 1.5x profit margin these days. This was just a market correction that they had it coming for almost a century.
Free market is about free price discovery, not about rigging the oil market via the oil cartel, nor about printed money pumping up the prices.
Free market is about free price discovery, not about rigging the oil market via the oil cartel, nor about printed money pumping up the prices.
This whole oil thing is becoming a huge crisis. I still don't even understand why the price of oil is this low. Anyone care to explain?
It is supply and demand. There were over invertments in the last few years, too much oil is being produced. So the price drops.
This whole oil thing is becoming a huge crisis. I still don't even understand why the price of oil is this low. Anyone care to explain?
My only real fear (besides the usual economic indicator crap) is that it halts the progress of alternative energies. I for one am excited for electrics to take over anything that runs on gas or diesel fuel.
If this means that there will be a bigger move to electric then this is good IMO. Too many technologies powered by electricity have come and gone with no support and some downright killed. Maybe this is a changing of the times.
I think oil will rebound a little,but oil will loose his mportance with time
it is the end of some period in human history,everything has his end and new begining
it is the end of some period in human history,everything has his end and new begining
My only real fear (besides the usual economic indicator crap) is that it halts the progress of alternative energies. I for one am excited for electrics to take over anything that runs on gas or diesel fuel.
USA ban for oil export has been removed.But in my opinion it is the end of industrial era and begining of technology era.There is no new economic tigers also
Why oil price has to be 80$,i think 35$it is enough
Why oil price has to be 80$,i think 35$it is enough
But this release of ban has made the supply of oil to various countries surplus. But in many countries even after this the Tax or price has not being cut down. It doesn't mean the dawn of technological era just because of this ban release. Its just a start of economy growth for few countries, because of this ban release few middle east countries are facing recession.
OPEC wants to monopolize the oil market by driving its price to a record low. They want to bankrupt oil fracking industries who need $70 a barrel to survive compared to them which only need $6 a barrel.
The oil price is below $50 for some time. There is no large scale fracking industry bankruptcy. What is the real cost for franking?
Low oil price can have some positive effects in car drivers monthly expenses at gas station, so I think this is very positive 
This volatility had nothing to do with the oil price. It was the result of Mike Hearns statement and the Cryptsy closing.
I agree about oil price drop. I see high volatility in BTC yet
The oil has dropped below $30 recently. It will drop further when the Iran oil flush the market. Bitcoin is a safe heaven now.
I agree about oil price drop. I see high volatility in BTC yet
I think low price damage Russia
The low oil price will damage the American enemies. Most of them are not democratic nations. The only beneficiary is the US and Western Europe.
OPEC wants to monopolize the oil market by driving its price to a record low. They want to bankrupt oil fracking industries who need $70 a barrel to survive compared to them which only need $6 a barrel.
I think low price damage Russia
Iran's sanctions are lifted, they also going to put tons of oil on the alrdy flooded market.
Expect even more lower prices for a some time untill..SA breaks ore Russia gets angry.
Expect even more lower prices for a some time untill..SA breaks ore Russia gets angry.
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