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Author: Subject: The Oil/Gas war continues
JrHagler
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[*] posted on 4.5.2016 at 03:25 AM
The Oil/Gas war continues


WARNING: This is just my personal opinion and that plus a buck-fifty will buy you a cup of coffee at your local convenience store.
April 04, 2016...Monday

I read in the local newspaper that oil prices are down to $35 and some change per barrel. Well just a couple of weeks ago the price of a barrel of oil was hovering the mid-40's and climbing.

What happen?......from what I read, this!

1.) A US Government agency that monitors crude oil stated that the USA's supply of oil that is currently being stored is at an all time high.

2.) Talk of controlling the amount of oil being produced internationally was just that....Talk!
In the meantime, Russia and Saudi Arabia CURRENTLY.....is producing at maximum levels.

3.) The country of IRAN......which recently had international economic sanctions removed....has announced that they are producing 2 million barrels of oil per month. Much to the angst(pain) of other countries, and will increase that number in the near future.....thus adding on to the global oil glut.

So, most USA consumers should see prices of gasoline going down again in a few weeks. If this keeps up...a couple of countries will be in default by the end of this year.

We'll See....:yikes:
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Tea_Honey
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[*] posted on 4.5.2016 at 06:52 PM


So Saudi Arabia and Russia are producing at "maximum" levels... currently.... and Iran is producing 2 million gallons/month for the GLOBAL Market. Since China could eat up 2 million gallons in a WEEK by itself what does that have to do with an oil glut, especially since you state the U.S., the 2nd largest producer of oil is hoarding, i.e., it's oil is NOT on the market? :headscratch:



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JrHagler
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[*] posted on 4.5.2016 at 09:09 PM


China is NOT gobbling up oil....China's economy has slowed down considerably....even other raw materials have taken a hit in price because China is NOT consuming as much.
Simple economics, decrease in demand leads to lower prices if you want to move that commodity.
As for hoarding (or storage) of oil...you can do that for so long, believe it or not. It costs real money to store (hoard) oil. And once that contract is up, the producers have to move it or get fined heavily. Like a late payment fee on top of your monthly bill. I've learned this while hauling fuel(as a trucker) for a living.
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JrHagler
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[*] posted on 8.5.2016 at 11:26 PM
Well, well, well......


Currently, a barrel of crude oil is going about $40 to $42.

It did rise from in the mid-20's in February to the high 50's and low 60's just a month ago......even with the glut of crude oil. The oil brokers thought that Americans will start driving again since its summer. Thus the higher asking price.

BUT, a little something did happened a couple of weeks ago to cause the decline......GASOLINE

Like a huge amount of refined oil (gasoline).....is topping the storage tanks and its not moving too fast. (now a gasoline glut)....and according to one report, it'll be early next year before we burn that off.
Thus the reduction from $60/barrel of oil to $40.

When winter arrives, we MIGHT see $20 plus/barrel or in some parts of the country....less than a dollar a gallon for gas for your car.

We'll See.....:yes:
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[*] posted on 8.6.2016 at 03:03 PM


It's already gone BENEATH $1/gal in some states this year. Gas was 97 cents/gallon in Michigan a couple months ago.



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