How low can oil go?

[68Camaro]

Down below 43, price is at a 6-year low and still dropping like a rock. And all the major petro pumpers are cash poor and pumping like crazy to generate cash flow even with inventories at record highs.

You are now I imagine experiencing about the same level of denial in the msm regarding our economic health as I'm sure existed in the prewar late 1930s about Germany and Japan.

[messymessy]

Isn't this a fairly common OPEC strategy to discourage oil development in other areas? Other than Russia, it's likely unrelated to the economy.

Oil prices get high. Other sources of oil are developed. OPEC overproduces and drives competitors out of business.

Just a guess, but if I remember right, oil from Canadian tar sands cost $60 a barrel to produce. Eventually, at $43 a barrel, they will cease production. Then OPEC is free to restrict supply again. Seems like this cycle has occurred twice in the last 40 years.

[68Camaro]

Below $41 today.

[fasteddy]

looks like it will be in the 30's soon...might even hit $30 soon.

[rsk1963]

wouldn't be surprised to see it at 37-38 before long... after that... only the TPTB knows

[NDFarmer]

The last time crude oil was this price I was able to buy gas for $1.69 now the price is $2.69 WHY?

[NHsorter]

The last time crude oil was this price I was able to buy gas for $1.69 now the price is $2.69 WHY?

EPA, IRS, OSHA, NOAA, AFL-CIO, BHO.......These and more make it more expensive to produce gasoline each year.

[nero12345]

Isn't this a fairly common OPEC strategy to discourage oil development in other areas? Other than Russia, it's likely unrelated to the economy.

Oil prices get high. Other sources of oil are developed. OPEC overproduces and drives competitors out of business.

Just a guess, but if I remember right, oil from Canadian tar sands cost $60 a barrel to produce. Eventually, at $43 a barrel, they will cease production. Then OPEC is free to restrict supply again. Seems like this cycle has occurred twice in the last 40 years.

I work in the oil patch in Alberta Canada, depending on which plant you go to it ranges from $28-40 a barrel to pull it out of the ground. That being said they can earn some additional money from gases/liquids generated by the processing but they are pinching pennies now expecting this to last awhile and even considering the possibility of lower pricing for multiple years. She's tough, but we kind of thought it wouldn't all go down easy.
Also we must all keep in mind, oil and gas are two different things. The price of gas can easily go much higher as the refineries are probably maxed out for output regardless of how much oil is available to process and at whatever price. And that's the thing to keep in mind as well, the Saudis oil comes out so pure that the refining process is so easy that their price out of the ground is likely under $10 a barrel(that's a guess, I have no idea what it costs) so they can out live a lot more expensive plants and potentially buy some of these places at lower prices.

[68Camaro]

It touched the 39s today before going back up. Still trending down, down, down...

[NDFarmer]

The last time crude oil was this price I was able to buy gas for $1.69 now the price is $2.69 WHY?

EPA, IRS, OSHA, NOAA, AFL-CIO, BHO.......These and more make it more expensive to produce gasoline each year.

But this was just six months ago. In February I bought gas for $1.69 and crude oil was higher priced then.

[bankmining]

The last time crude oil was this price I was able to buy gas for $1.69 now the price is $2.69 WHY?

EPA, OSHA, NOAA, AFL-CIO, BHO.......These and more make it more expensive to produce gasoline each year.

But this was just six months ago. In February I bought gas for $1.69 and crude oil was higher priced then.

Maybe the oil companies are already factoring in future regulations, restrictions? Also, I know crude and refined products don't always exactly track in lock step. Another factor in my state is the gas state. Earlier this year, we paid 55.9 cents a gal. combined state (37.5) and federal (18.4) taxes. The state increased its share by 7 cents this summer making it 62.9 total. Next summer we're getting hit with another 4.9 taking it to 67.8 cents total tax per gallon.

[Diggin4copper]

But the state does so much for their 68 cents... No..wait..

[bankmining]

Well, they do send state officials out-of-state and out-of-country for climate change meetings/seminars