Oils prices Dropping?

[Dark Agent]

Oils prices Dropping?

Oil prices will drop to $34 a barrel and Rand also got a bit strong.

I am so Happy

 

[APoc184]

uhm no. oil will go up again.

opec just pulled 2 million barrels/day from the market. that will not let prices come down

 

[mercurial]

It can drop however the hell it wants, the Rand/Dollar exchange rate is effectively raping us.

 

[LazyLion]

uhm no. oil will go up again.

opec just pulled 2 million barrels/day from the market. that will not let prices come down

That may not help much. With the world economy the way it is, demand for Oil has fallen off. They can cut production, but remember when they do that, they have to cut jobs/keep paying salaries as well. OPEC also gets hurt when they cut production. Unless the credit crisis can be eased, people are not borrowing, Industry is not expanding and Oil becomes less of a resource. Most economists think the cut in production is not going to have much effect going into 2009.

 

[PeterCH]

uhm no. oil will go up again.

opec just pulled 2 million barrels/day from the market. that will not let prices come down

If you read closely about that you'd also see that OPEC has also asked non-OPEC states to cut production too. Why? Because most OPEC countries are in serious financial trouble and can't really afford cuts.

Non-OPEC states:
Russia - can't cut oil production for various geographic reasons.
Also Russia has a huge stock of crude for it's own use because the previous
winter was too warm and people consumed to little.

(OPEC) Iran, Venezuela, Ecuador:
These countries can't afford to cut.

There are other reasons why other nations may not want to cut.
Countries like Angola lack the expertise to actually implement cuts.

Simply put, OPEC is asking for this because all their previous cuts have not shifted the price up. And when OPEC says "CUT" -- 1. Who do you think will cut because those who cut will loose the most. 2. Who can afford to cut?

At present only Libya, Sudan, Saudis, Emirates and Kuwait can afford to cut.
But would they want too. Cutting oil sales means loss of revenue.

Would you being one of a 100 banana farmers want to cut babana sales if you knew only 10 other guys would cut and the rest would continue selling at the low price, maybe even benefit more from the higher prices when those came along because of your cuts? (if they came along, lol).

Anyway for the time being it seems that oil will not go up. That won't last forever but genuine demand, which will rise, will increase prices not a reduced production. The world can always go back to biofuels and coffee grounds .

 

[Dark Agent]

Wait for time. Give time space.

 

[Sneeky]

Anyway for the time being it seems that oil will not go up. That won't last forever but genuine demand, which will rise, will increase prices not a reduced production. The world can always go back to biofuels and coffee grounds .

Hehehe, OPEC fealt f0k0l when the price was surging!

The downturn in the global economy is such that despite the 2m cut, the price still went lower

 

[supersunbird]

I have a theory that the high oil price was ones of the straws that broke the camels back in the US markets... or am I just a noob for thinking it?

 

[Lord Anubis]

Opec fail rofl

 

[Phenom]

uhm no. oil will go up again.

opec just pulled 2 million barrels/day from the market. that will not let prices come down

That would have meant that it should have already have fallen. The market prices in FUTURE valuations.

We clearly have ample supply.

I've heard somewhere that it costs some nations like Saudi, only $4 to produce 1 barrel of oil. The bottom is far off.

As oil demand may slow due to a global slowdown, and after that will be an alternatives revolution

Obama has a very open-minded and intelligent energy secretary. Bush also just this week, opened millions of hectars of land for shale oil exploration - there is far more shale oil than all the total of the entire planets known oil reserves, it is said to cost under $50/barrel to mine them. New off-shore land will also be opened for oil exploration. All while the BRIC nations (most growing demand) are also pressuring impressive research on alternatives.


Oil prices are likely to remain low. IMO

 

[guest2013-1]

Please PLEASE PLEASE.... $34 per barrel is still a shed load more than what it used to be. It's like Telkom "cutting bandwidth prices"

If its ****ing ridiculous to begin with, any cut in pricing would make people happier. Don't be a sheep now yahear? FIGHT FOR LOWER PRICES

 

[PeterCH]

Oil storage sites around the world are full .

 

[Jase]

I just took this picture around 30mins ago... This beast replaced the previous tanker around an hour ago and will be replaced by another in around 1.5days (The next tanker is already waiting about 1km from this one).

http://mybroadband.co.za/photos/showphoto.php?photo=8628&cat=500

A drop in price also means an increase in consumption.

 

[stormwalkerza]

Oil storage sites around the world are full .

Also heard this info this weekend, app many governments have been stockpiling over the past few years which had artificially increased the price of oil insanely high, also, something about oil linked to money, which has now pretty much been unlinked ...

Full storehouses, no direct money link, oils going down to proper demand levels ...

And although its not as commercially available, electric alternatives & renewable energy (Solar/wind/etc) to power or recharge said vehicles and items are becoming cheaper and cheaper every day and more wide spread ... oils going down, its only a matter of time ...