$100 A Barrel Oil is on the Way

[milohimself]

I trust exxon is doing what is most profitable for them

 

[overseasorange]

I trust exxon is doing what is most profitable for them

If not,I am selling my Exxon stock.

 

[myrobbins7]

Oil - $79.43 -$2.02 -2.48%

It just keeps dropping.

 

[VolsNSkinsFan]

If it drops any farther, the only industry doing well in the USA will quickly come to a stop

 

[Velo Vol]

If it drops any farther, the only industry doing well in the USA will quickly come to a stop

To the benefit of most other industries.

I don't think there's much more downside here, though, unless things get really crazy in Europe. Middle Eastern countries aren't going to sell oil < $80 for a prolonged period.

 

[vollygirl]

Thought there would be more conversation in this thread. We're under $3.

 

[rjd970]

Thought there would be more conversation in this thread. We're under $3.

Historically they are still high. They have been so high for so long that it seems low now.

Gas Price History Graph (historic prices)

 

[Velo Vol]

I didn't think it would drop below $80 this summer.

We're due for another round of Middle East tension rumors, though, aren't we?

 

[Velo Vol]

I didn't think it would drop below $80 this summer.

At least I wasn't on talk radio this spring telling millions of listeners that we were going to see $5 or $6 gallon gas this summer.

 

[VolsNSkinsFan]

Crude up 8% on market rally and Iran Oil Embargo goes into effect today

 

[Velo Vol]

How much of this was economic weakness, and how much was record high prices? Or, chicken/egg.

The Oil Drum | Lower Oil Prices - Not a Good Sign!

 

[WA_Vol]

How much of this was economic weakness, and how much was record high prices? Or, chicken/egg.

The Oil Drum | Lower Oil Prices - Not a Good Sign!

Interesting graph, I wonder how much is due to more economical cars being used.

 

[WA_Vol]

that website has some good info, interesting graph here:

 

[BigPapaVol]

Interesting graph, I wonder how much is due to more economical cars being used.

Almost none. It's about construction falling to near 0 and unemployment being up. Price at the pump has also curtailed use.

 

[WA_Vol]

Almost none. It's about construction falling to near 0 and unemployment being up. Price at the pump has also curtailed use.

looking like another recession potentially, i think thats 2 quarters of negative GPD, I guess this would be negative in the 2nd quarter

 

[Velo Vol]

looking like another recession potentially, i think thats 2 quarters of negative GPD, I guess this would be negative in the 2nd quarter

Not the second. Third TBD.

 

[Velo Vol]

Brent back over $104.

 

[lawgator1]

Brent back over $104.

Why?

Makes no sense if we are heading into recession.

 

[VolsNSkinsFan]

buy the dip, sell the rip. Pretty simple

 

[VolsNSkinsFan]

$90 for a barrel of West Texas Crude

 

[Velo Vol]

$91+

We're due for another round of Middle East tension rumors, though, aren't we?

Correct.

 

[Velo Vol]

This guy predicts the North Dakotan oil boon will start to wither in about six years:

But surely this is just Montana, right Bob? You don't mean to suggest that the entire Bakken formation, including North Dakota -- on which so many North American projections centrally rely -- is in trouble, too? Sadly, that is precisely what Brackett means. In fact, he has quantified the Bakken's production trajectory. The key number is six - that is the longevity of a Bakken well before it turns into a "stripper," industry argot for a worn-out nag producing just 10 or 15 barrels a day, from 400 barrels a day at its peak. Right now, just 200 modern Bakken wells are strippers. But in roughly six years, there will be 4,000 of them, Brackett says. "All good things in the oil patch come to an end," Brackett told me. "In the case of North Dakota, that is a long time -- years -- off, but even that too will suffer the same fate" as Montana.

 

[Velo Vol]

Interesting Q&A with Mish Shedlock.

Mike “Mish” Shedlock Answers: Is Global Trade About To Collapse; And Where Are Oil Prices Headed?

I generally agree with what he says about oil.

Boy, if China really does slow down to 2% growth, as he suggests, our long slog to recovery is going to get even longer.

 

[VolsNSkinsFan]

Those wells that are under producing had the wrong set up on them and all the producers now have the correct set ups that allow the well to stay pressurized longer and produces more over the long term.

Also there are multiple levels of oil and so far far most wells have only targeted one level while multiple exploratory wells have been successful

One of the most successful wild catter of all time thinks there coukd be 100 billion barrels there

 

[myrobbins7]

Obama considers releasing from US strategic oil reserves

The US is studying plans for a potential release of oil reserves to dampen rising gasoline prices and avoid the negative effect from its sanctions against Iran.

Obama considers releasing from US strategic oil reserves