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Old 01-13-2015, 04:30 PM
 
17,237 posts, read 14,821,251 times
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Quote:
Originally Posted by ASOT View Post
$100/bbl oil never again? Let's not kid ourselves, what we're seeing now has been done before. Saudi Arabia opened the spigot and waged a price war in 1986, driving oil down to $10/bbl and hurting the U.S. oil industry. They had 20+ years of market dominance and profits, as we saw with oil climbing to $140+ without competition from alternative producers.
^^THIS. I saw this on TV the other day, that they are doing this to drive other countries out of the oil business, then you can bet prices will rise. IMO anyone who buys a gas guzzler because they're counting on this to last are foolish.
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Old 01-13-2015, 04:40 PM
 
Location: Wonderland
40,954 posts, read 32,676,353 times
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I'm not so sure that the Saudis are in as much control of this as they would like for us to believe.

The dollar is stronger. The supply of oil is outpacing the demand. That's one simple way of looking at it. This is an interesting article.

The Simple Reason For The Oil Price Drop

Prices have dropped before and they always rise again. I don't think this time is going to be any different.

My husband works in the oil and gas industry as a consultant. He's seeing and hearing the usual "tighten the belt a bit" talk but nothing alarming. He's not overly concerned but he did say "Buckle your seatbelt - this is going to be another bumpy ride." Life as usual in the oil industry.
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Old 01-13-2015, 08:44 PM
 
Location: USA
2,580 posts, read 3,434,964 times
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It's also cheap because the world is (relatively) stable right now, but that could change quickly.

What if Israel gets spooked & decides to bomb Iran's nuclear facilities & Iran reacts by blocking off the Strait of Hormuz?

Goodbye cheap oil if that were to happen.
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Old 01-13-2015, 09:40 PM
 
Location: Greater NYC, USA
2,762 posts, read 2,623,928 times
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Quote:
Originally Posted by ASOT View Post
$100/bbl oil never again? Let's not kid ourselves, what we're seeing now has been done before. Saudi Arabia opened the spigot and waged a price war in 1986, driving oil down to $10/bbl and hurting the U.S. oil industry. They had 20+ years of market dominance and profits, as we saw with oil climbing to $140+ without competition from alternative producers.


It seems clear that it is not in our strategic interest to let US Oil industry fail.
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Old 01-14-2015, 04:59 AM
 
4,230 posts, read 5,739,554 times
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Quote:
Originally Posted by DPolo View Post
It seems clear that it is not in our strategic interest to let US Oil industry fail.
Unless you're a liberal you'd hope for it to fail.
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Old 01-14-2015, 06:22 AM
 
17,237 posts, read 14,821,251 times
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Quote:
Originally Posted by Fargobound View Post
Unless you're a liberal you'd hope for it to fail.
Ridiculous statement, as well as against TOS.
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Old 01-14-2015, 11:16 PM
 
Location: Brawndo-Thirst-Mutilator-Nation
15,170 posts, read 15,210,720 times
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OPEC is trying to put a wrench in the works of the USA's oil boom.
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Old 01-15-2015, 01:18 AM
 
38,120 posts, read 15,305,729 times
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Quote:
Originally Posted by tickyul View Post
OPEC is trying to put a wrench in the works of the USA's oil boom.
OPEC has essentially collapsed. It's every man for himself now from the nations that pump oil. None of them are willing to do what it takes to cut production because it will cause their own Potemkin economy to go down the toilet.

With oil below $50 they all have to pump full tilt to keep the money flowing.

Gonna take a lot longer for those hybrid/electrics that Obama wants everyone to drive to pay back.
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Old 01-15-2015, 05:31 AM
 
Location: Texas
32,544 posts, read 17,650,891 times
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Default Saudi prince: $100-a-barrel oil 'never' again

I'd never say "never" when it comes to high gas prices. It's cyclical and that wheel is always turning. Enjoy the low prices while they last, but understand that they won't.
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Old 01-15-2015, 07:31 AM
 
7,000 posts, read 6,635,326 times
Reputation: 5274
Quote:
Originally Posted by KathrynAragon View Post
I'm not so sure that the Saudis are in as much control of this as they would like for us to believe.

The dollar is stronger. The supply of oil is outpacing the demand. That's one simple way of looking at it. This is an interesting article.

The Simple Reason For The Oil Price Drop

Prices have dropped before and they always rise again. I don't think this time is going to be any different.

My husband works in the oil and gas industry as a consultant. He's seeing and hearing the usual "tighten the belt a bit" talk but nothing alarming. He's not overly concerned but he did say "Buckle your seatbelt - this is going to be another bumpy ride." Life as usual in the oil industry.
The government also started to crack down on the speculative storage of oil last summer. There were the congressional hearings about the Wall Street banks' exceeding their regulated limits on commodities. The same type of thing was occurring in China with the commodities investment firms.
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