I gleaned the following from Bloomberg tv.
It's about $55/bbl and dropping, compared to June, when it was about $100.
Saudi Arabia, the world's #1 producer most of the time, and center of OPEC, is letting it drop until the glut is gone. The glut is due to US production and a slowdown in Communist China.
Russia is hurting badly from the low price, too. The ruble has been in near freefall.
Most US production is profitable only when the price is above $80. The price will continue to drop until the many small US companies are bankrupt. Then the big guys will buy them up for cents on the dollar, and keep the excess off the market until oil hits $80 again.
Meanwhile, there is a rush to buy gas guzzlers in the US.
I hadn't heard about the rushing to buy gas guzzlers part, but I remember the last time that the price of oil was low - speculators bought cheap oil and stored it in tanks and tankers around the world to the point of overflowing, waiting for prices to go back up.
In the last article I read on CNBC.com interviewed several Bakken oil producers that claimed they could still remain profitable on $40-$60/barrel oil. The long term projections are for oil to hover around $60/barrel for the next five years or so. In spite of that, there's no talk of repealing the CAFE regulations, so I expect gasoline use in this country to keep dropping in the foreseeable future.
5 years is a long time and i would think some idiot would start a war before then!! Bud.
Its $1.93 here in central Texas. Have heard before that something will cause a dramatic culture shift sooner or later. Just wondering>>>>>>>>>>>>>>>>__________
I paid 1.81 for it in Tulsa last week!
I heard a fellow say 1.77 in Lowel,Mi which is close to Grand Rapids. I saw Diesel in Midland,Mi today at 2.84!! We all pay for the price of Diesel weather we drive or not! Bud.
Venezuela, Russia and Iran are being hurt big time over the decline in oil prices. So, from that stand point.....great. But, the price will be paid eventually by all of us. The guess down here in oil city is it'll take a year before we see prices go back up. So enjoy while it last. Those of us using diesel....it's about where it will be. Keep in mind that there is a .06 federal tax burden above that paid for gasoline. So let's get out and enjoy some of the great T tours offered in 15.
All I know is the lower prices are a welcome relief to my pocket. I visited family both holidays this year for less than 20 bucks!.
I hope some of the American company's can plow thru this and get things built and ready,like the pipeline, so that when the middle east wants to control us again with oil,we can let them drink it and use our own.Regardless of the cost,if that oil money is kept here at home,Americans can benefit from it instead of some Arab getting another white gold plated Mercedes off our backs..
As far as Russia,and Iran suffering,Well,kinda hard to wage war on your neighbors when you aint got no money.
It sounds good but when [our people] can make more money buying it offshore it will happen again?? Bud.
I visit some of my family about 3 times a year. The round trip works out to be about 2000 miles. Thanks to the lowered gas prices I was able to buy them gifts this year. I would rather buy them gifts than give my money to the middle east. JMHO.
Ralph !! what's Jerry going to do on the 1st. New's sez for everybody to get ready for a hike . Have heard 40 to 60 cents.
I continue to use my gas reward grocery store points to fill my prius. I filled for 11 dollars today. The gauge in the dash told me that my forty mile commute only cost me 1.05. Lets face no one gets pay raises so lets keep using less gas until U.S production is all that is needed and the middle east can eat poop.
If you want to follow oil prices this website works good. It takes a couple minutes to download on my dial up but it gives the gas price wholesale and the oil per barrel and has stuff to read.
About March 2015 the oil Wh??res will more than make up the price differential...my guess is $3.90 / gal and up.....They have done this for the last 7 years.....just as farmers are getting ready to get back into the filed.
The other side of the coin is that domestic drilling came to a halt.
I had some hope of getting in on a good well and making a little extra money for my old age. That chance is gone until the price of crude comes back up. (wells were being drilled in my area)
No more model T'a added to my collection now.