Article: Gas prices going up because of COVID...

#26
#26
hUTch2002 said:
Then why did they go up right when he took office after being stagnant forever? To me, people know crap like home shutting down Keysto ne was coming and news affects pricing. It’s only the beginning.
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Coincidence. Research local/regional gas prices over the years
 
#28
#28
hUTch2002 said:
I’ll give you that it’s possible. I’ve seen gas prices jump due to someone saying they were going invade another country though so the prices do react to news, or at least the event gets blamed.
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Hog brought up a great point. Speculative trading has an impact as well. Still, there are always time lags between the actual catalyst and price changes
 
#29
#29
hUTch2002 said:
I’ll give you that it’s possible. I’ve seen gas prices jump due to someone saying they were going invade another country though so the prices do react to news, or at least the event gets blamed.
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The Saudis announced a 1M bpd production cut at the OPEC+ meeting a few weeks ago. That will likely cause a production deficit for the year, and crude prices spiked on the news. That ripples through the industry from a pricing standpoint.

Oil stocks soar after Saudi Arabia announces surprise production cut of 1 million barrels per day
 
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#32
#32
TheColdVolTruth said:
The Saudis announced a 1M bpd production cut at the OPEC+ meeting a few weeks ago. That will likely cause a production deficit for the year, and crude prices spiked on the news. That ripples through the industry from a pricing standpoint.

Oil stocks soar after Saudi Arabia announces surprise production cut of 1 million barrels per day
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Why not..we just handed them more control on a silver platter. Something we finally somewhat overcame after 60 years and now with Biden taking a soft stance on Iran, whcih the Saudis will not appreciate, we will have to go begging.
 
#33
#33
Orangeburst said:
Why not..we just handed them more control on a silver platter. Something we finally somewhat overcame after 60 years and now with Biden taking a soft stance on Iran, whcih the Saudis will not appreciate, we will have to go begging.
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I'm sure that's it. It had nothing to do with setting a price floor with global demand still lagging and the Euro zone parking more planes a month ago when the UK covid variant had European govs enacting further travel restrictions. OPEC doesn't want to see a repeat of last spring when prices cratered. WTI is just now normalizing to pre-covid levels where US oil companies can make a profit (above $40/ba). But it's easier to say, "Blue man bad." So we can just do that.
 
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#34
#34
TheColdVolTruth said:
I'm sure that's it. It had nothing to do with setting a price floor with global demand still lagging and the Euro zone parking more planes a month ago when the UK covid variant had European govs enacting further travel restrictions. OPEC doesn't want to see a repeat of last spring when prices cratered. WTI is just now normalizing to pre-covid levels where US oil companies can make a profit (above $40/ba). But it's easier to say, "Blue man bad." So we can just do that.
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COVID ecomomic impacts have been going on for three quarters. Well to the future with the US dimishing oil production, I am point on. So yes, Biden is a POS which will lead to less control of the commodity. They are not going to be happy with the Iranian deal either.

And to the juvenille parenthesis quote.....well juvenille.
 
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#35
#35
Orangeburst said:
COVID ecomomic impacts have been going on for three quarters. Well to the future with the US dimishing oil production, I am point on. So yes, Biden is a POS which will lead to less control of the commodity. They are not going to be happy with the Iranian deal either.

And to the juvenille parenthesis quote.....well juvenille.
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Blue man bad. Got it. Lol.
 
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#37
#37
TheColdVolTruth said:
The Saudis announced a 1M bpd production cut at the OPEC+ meeting a few weeks ago. That will likely cause a production deficit for the year, and crude prices spiked on the news. That ripples through the industry from a pricinge standpoint.

Oil stocks soar after Saudi Arabia announces surprise production cut of 1 million barrels per day
Click to expand...

When OPEC has a challenger such as US pumping oil and sending it to market they have less control over pricing.

When they do not have a challenger they can dictate pricing simply by deciding how much is produced and kept in reserves.

Biden is shutting production down here so now OPEC will fo back to name their price mode and obviously it's in their best interest to drive the barrel cost up.

This is two fold issue: one we were stagnant for 10 months and are now increasing demand and two we are no longer going to be flooding the market ourselves to drive down demand so OPEC now controls the market much more.
 
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#38
#38
NEO said:
When OPEC has a challenger such as US pumping oil and sending it to market they have less control over pricing.

When they do not have a challenger they can dictate pricing simply by deciding how much is produced and kept in reserves.

Biden is shutting production down here so now OPEC will fo back to name their price mode and obviously it's in their best interest to drive the barrel cost up.

This is two fold issue: one we were stagnant for 10 months and are now increasing demand and two we are no longer going to be flooding the market ourselves to drive down demand so OPEC now controls the market much more.
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It was a "we are the market manipulator move". Going to see it in fill effect in a year, just as we saw for decades. IMO, with the Iranian deal planned, we are gonna be squeezed with even more commitment to the ME.
 
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#39
#39
Orangeburst said:
What an articulate response when discussing policy.
Yes..a dumb ass move to diminish our own production, so laugh away as our troops bow to the Kingdom.
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Lol. It's cute you think you were discussing policy. I'm just disappointed that I was overthinking oil pricing impacts the whole time I was trading oil derivatives last year. It's as simple as orange man good and blue man bad.
 
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#40
#40
TheColdVolTruth said:
Lol. It's cute you think you were discussing policy. I'm just disappointed that I was overthinking oil pricing impacts the whole time I was trading oil derivatives last year. It's as simple as orange man good and blue man bad.
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No it is not kid. I am talking macro policy and if you are to ignorant to understand the impact of dimishing national oil produstion, then I would never want you as my trader.
 
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#43
#43
Orangeburst said:
It was a "we are the market manipulator move". Going to see it in fill effect in a year, just as we saw for decades. IMO, with the Iranian deal planned, we are gonna be squeezed with even more commitment to the ME.
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Climate change proponents need a higher gas price to make buying electric more appealing. Cheap gas prices dissuade all this climate change bs.

Just another squeeze on the small guy.
 
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#44
#44
TheColdVolTruth said:
Lol. It's cute you think you were discussing policy. I'm just disappointed that I was overthinking oil pricing impacts the whole time I was trading oil derivatives last year. It's as simple as orange man good and blue man bad.
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Dont't run away now...I wanted to hear your views. Sure oil is a commodity and a nation uses it's commodity leverage as much as possible. There is a reason we we spent so much blood and treasure in the ME for decades.

Sure, COVID negatively impacted national production basis demand and COP. Actually, the cut by SA is a boost to the higher production cost in the US...at this time, but benefits them with more revenue now that our spigot is being squeezed and lagged production and politcal directives. The danged dance of we need u but we control how you protect us.

My point being that long term there is nothing good with decreasing your ability to manipulate such a vital ecomomic commodity. SA has decades of experience and we are handing it away.
 
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#45
#45
NEO said:
Climate change proponents need a higher gas price to make buying electric more appealing. Cheap gas prices dissuade all this climate change bs.

Just another squeeze on the small guy.
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Great point. Basically what they have done in Europe with such high prices, but we are a suburban nation and the tech for green is not there.
This is a very complicated and layered disussion including petro $, pipelines and such.
All I know is Bidens son was involved in pipeline energy, yet Pops is against domestic pipelines. Fishy.
 
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#46
#46
TheColdVolTruth said:
That's exactly what they're saying, or *reads article* they're saying if the nation recovers broadly in 2021 that demand could outpace production that was curbed due to shutdowns which could then cause prices to move higher.
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I could see a recovery from covid pushing up demand and leading to prices going high, but explain this...

While many unknowns remain about what factors may impact gas prices in 2021, the largest likely factor driving gas prices in the year ahead will be COVID-19, and whether there is a broad recovery after the severe shutdowns and restrictions that sunk gasoline demand and prompted Americans to work and learn from home.
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#49
#49
NEO said:
When OPEC has a challenger such as US pumping oil and sending it to market they have less control over pricing.

When they do not have a challenger they can dictate pricing simply by deciding how much is produced and kept in reserves.

Biden is shutting production down here so now OPEC will fo back to name their price mode and obviously it's in their best interest to drive the barrel cost up.

This is two fold issue: one we were stagnant for 10 months and are now increasing demand and two we are no longer going to be flooding the market ourselves to drive down demand so OPEC now controls the market much more.
Click to expand...

Please tell us how "Biden is shutting production down here."
 
#50
#50
Vol Main said:
Please tell us how "Biden is shutting production down here."
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Fracking on federal lands is the start so far.

The pipeline will get rerouted via Berkshire but it will cost more and the cost will be built back into the final cost.

It's also literally like a week in.

I assume off shore drilling will be next.
 
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