The demand for oil is low due to economic slow down, supply is high because Saudi refused to cut production and the US is importing less crude. Factor in Russian politics, we have a recipe for record low oil prices!
I do not believe it will crash any lower than $40 per barrel. That is the all time low for the past 10 years! Go any lower, they will cease all drilling, cos they will be producing at a loss. Supply drops and price will pick up.
(ATL was around $40 in 2009 and ATH was $140 in 2008)
Topic: Saudi prince: $100-a-barrel oil 'never' again - page 2. (Read 1330 times)
i really doubt it. once russia collapses and capitulates, prices will go back up. shale gas is not enough of a threat to OPEC to make them increase production - it's not in their best interests to cut prices forever.
Quote
Saudi billionaire businessman Prince Alwaleed bin Talal told me we will not see $100-a-barrel oil again. The plunge in oil prices has been one of the biggest stories of the year. And while cheap gasoline is good for consumers, the negative impact of a 50% decline in oil has been wide and deep, especially for major oil producers such as Saudi Arabia and Russia. Even oil-producing Texas has felt a hit. The astute investor and prince of the Saudi royal family spoke to me exclusively last week as prices spiraled below $50 a barrel. He also predicted the move would dampen what has been one of the big U.S. growth stories: the shale revolution. In fact, in the last two weeks, several major rig operators said they had received early cancellation notices for rig contracts. Companies apparently would rather pay to cancel rig agreements than keep drilling at these prices. His royal highness, who has been critical of Saudi Arabia's policies that have allowed prices to fall, called the theory of a plan to hurt Russian President Putin with cheap oil "baloney" and said the sharp sell-off has put the Saudis "in bed" with the Russians. The interview has been edited for clarity and length.
Full interview...http://www.usatoday.com/story/money/columnist/bartiromo/2015/01/11/bartiromo-saudi-prince-alwaleed-oil-100-barrel/21484911/
I expect $100 oil again in the next 3 years, if Russia somehow convinced the world today that it wasn't the bad guy everyone says they are, oil would rise by $30 in the next 4 weeks in my opinion.
The oil price will continue to fall.
Make gas cheap enough and fewer will want to spend the extra $10-30k to get a hybrid or full-electric.
That might well be a net positive. Energy prices are only partly fungible. Electric power through a coal power plant might well cost more to run a car than gasoline, if gasoline were cheap. And from the chimeric "co2 pollution" viewport, coal has two carbon atoms for every one in gas, doesn't it?We can always count on the government to tax the fuck out of gas though, and increase the taxes even higher to compensate for crude dropping.
Not in the USA. Most state and federal gas taxes are fixed, like $ 0.21 per gallon.
Make gas cheap enough and fewer will want to spend the extra $10-30k to get a hybrid or full-electric. We can always count on the government to tax the fuck out of gas though, and increase the taxes even higher to compensate for crude dropping.
Quote
Saudi billionaire businessman Prince Alwaleed bin Talal told me we will not see $100-a-barrel oil again. The plunge in oil prices has been one of the biggest stories of the year. And while cheap gasoline is good for consumers, the negative impact of a 50% decline in oil has been wide and deep, especially for major oil producers such as Saudi Arabia and Russia. Even oil-producing Texas has felt a hit. The astute investor and prince of the Saudi royal family spoke to me exclusively last week as prices spiraled below $50 a barrel. He also predicted the move would dampen what has been one of the big U.S. growth stories: the shale revolution. In fact, in the last two weeks, several major rig operators said they had received early cancellation notices for rig contracts. Companies apparently would rather pay to cancel rig agreements than keep drilling at these prices. His royal highness, who has been critical of Saudi Arabia's policies that have allowed prices to fall, called the theory of a plan to hurt Russian President Putin with cheap oil "baloney" and said the sharp sell-off has put the Saudis "in bed" with the Russians. The interview has been edited for clarity and length.
Full interview...http://www.usatoday.com/story/money/columnist/bartiromo/2015/01/11/bartiromo-saudi-prince-alwaleed-oil-100-barrel/21484911/
Now there are multiple entities who are shaping the market. One entity, however rich he is, can not command anymore...
Quote
Saudi billionaire businessman Prince Alwaleed bin Talal told me we will not see $100-a-barrel oil again. The plunge in oil prices has been one of the biggest stories of the year. And while cheap gasoline is good for consumers, the negative impact of a 50% decline in oil has been wide and deep, especially for major oil producers such as Saudi Arabia and Russia. Even oil-producing Texas has felt a hit. The astute investor and prince of the Saudi royal family spoke to me exclusively last week as prices spiraled below $50 a barrel. He also predicted the move would dampen what has been one of the big U.S. growth stories: the shale revolution. In fact, in the last two weeks, several major rig operators said they had received early cancellation notices for rig contracts. Companies apparently would rather pay to cancel rig agreements than keep drilling at these prices. His royal highness, who has been critical of Saudi Arabia's policies that have allowed prices to fall, called the theory of a plan to hurt Russian President Putin with cheap oil "baloney" and said the sharp sell-off has put the Saudis "in bed" with the Russians. The interview has been edited for clarity and length.
Full interview...http://www.usatoday.com/story/money/columnist/bartiromo/2015/01/11/bartiromo-saudi-prince-alwaleed-oil-100-barrel/21484911/
There is a great deal of elasticity in the renegotiation of land contracts for shale production. The entire US industry knows this and I believe they can respond competitively.
Quote
Saudi billionaire businessman Prince Alwaleed bin Talal told me we will not see $100-a-barrel oil again. The plunge in oil prices has been one of the biggest stories of the year. And while cheap gasoline is good for consumers, the negative impact of a 50% decline in oil has been wide and deep, especially for major oil producers such as Saudi Arabia and Russia. Even oil-producing Texas has felt a hit. The astute investor and prince of the Saudi royal family spoke to me exclusively last week as prices spiraled below $50 a barrel. He also predicted the move would dampen what has been one of the big U.S. growth stories: the shale revolution. In fact, in the last two weeks, several major rig operators said they had received early cancellation notices for rig contracts. Companies apparently would rather pay to cancel rig agreements than keep drilling at these prices. His royal highness, who has been critical of Saudi Arabia's policies that have allowed prices to fall, called the theory of a plan to hurt Russian President Putin with cheap oil "baloney" and said the sharp sell-off has put the Saudis "in bed" with the Russians. The interview has been edited for clarity and length.
Full interview...http://www.usatoday.com/story/money/columnist/bartiromo/2015/01/11/bartiromo-saudi-prince-alwaleed-oil-100-barrel/21484911/
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