Didn't think I'd ever see gas under $3 again, let alone under $2/gal. This is just outside of Cincinnati this afternoon. Diesel finally starting to drop as well.
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never thought I'd see this again
- Thread starter Sideways
- Start date
Enjoy it while it lasts there is a big increase coming !.We are in the middle of a price war designed to get rid of the competition. Some parts of the world are paying less than the cost to produce fuel!
This side of the pond we are still paying 1.$1.30 a liter ( 4 lt to a us gallon) Thats over the holiday break, bet it goes down next Monday That's how they roll over here.
OPEC is trying to break Russian oil, the US is pumping more oil/Natural Gas and this is also causing the price to drop. VK is right it WILL go up again and go up big just enjoy it.
The way I understand it, the leader of opec (saudi's) are crashing the market to pretty much put other oil producers out of buisness. Their production cost is somewhere around$4-5 a barrel, so they can sustain a drop in the market for some time. Producers in Russia, Africa, the U.S. and even other opec nations like Syria can't sustain such a drop, and will most likely fold. They're eliminating the competition.
So yes, the price will go back up. After they've put everyone else out of buisness, and they can set the price for whatever they want. The saudi's will be wealthier than ever.
Its nice for now, but we're all goin to get screwed later. Happy new year!
So yes, the price will go back up. After they've put everyone else out of buisness, and they can set the price for whatever they want. The saudi's will be wealthier than ever.
Its nice for now, but we're all goin to get screwed later. Happy new year!
and also right now ISIS (or ISIL) is selling oil they are stealing from captured oil fields @ $25 a barrel to fund their particular brand of religious freedom.
Saudi Arabia does have a low production cost however it is a lot higher than $4-$5 per bbl. More like $40/bbl for off shore production and $27/bbl for on shore. I don't think it is all OPEC as I believe there is a move to crush the Russian economy which is something western countries have been wanting over Ukraine.
Yes CK, I believe you're right. The sanctions the U.S. imposed on Russia over Ukraine, Puten just laughed at. So the west got the saudi's involed,
because they were already pissed about russia relationship with iran.
This may be all speculation, but regardless they're playing the standard oil game, crushing the competition, and crushing russia at the same time. 2 birds with 1 stone.
That $4-5 bbl, I read somewhere, and does seem really low. It is said they do have the lowest production costs of anyone in the world. Although the actual cost numbers vary.
I think I got my numbers above from Business Week. There was an article about how much it costs various countries to produce crude.
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