Oil Prices Trade Below $40 A Barrel For First Time Since 2009
Source: Washington Post
August 21 at 7:11 PM
U.S. oil prices traded below $40 a barrel for the first time since 2009, ending 2.1 percent lower Friday on signs of U.S. oversupply and weak Chinese manufacturing and notching the longest weekly losing streak in almost three decades.
U.S. crude dipped below the $40 threshold, before closing at $40.45, following weekly data that showed U.S. energy firms added two oil drilling rigs last week, the fifth increase in a row. The rise in the number of rigs emerging after a second-quarter lull in prices is adding to concerns that U.S. shale production is proving slow to respond to falling prices, prolonging a global glut.
Everyone is still looking at it saying Wow, you still dont have production coming down, said Tariq Zahir, founder at Tyche Capital in Laurel Hollow, N.Y.
U.S. October crude settled 87 cents, or 2.1 percent, lower at $40.45 a barrel, having touched a new 6½-year low of $39.86 a barrel. Front-month U.S. crude has fallen 33 percent over eight consecutive weeks of losses, the longest losing streak since 1986.
Read more: http://www.washingtonpost.com/business/economy/oil-prices-trade-below-40-a-barrel-for-first-time-since-2009/2015/08/21/0a598a14-4815-11e5-8e7d-9c033e6745d8_story.html
Duckhunter935
(16,974 posts)FLPanhandle
(7,107 posts)It's now under $2.40 here in Florida.
Duckhunter935
(16,974 posts)2.14 two weeks ago now 2.45
TheFarseer
(9,308 posts)Totally ignoring how the bottom has fallen out on oil prices. Can you say collusion?
Lucky Luciano
(11,242 posts)Due to the Chicago refinery outage a couple weeks ago, gasoline rallied and oil fell (less oil demand if a refinery is down!). I watched some days with oil down and gasoline up in the markets.
This past week oil was down a lot, but it outperformed gasoline by a ton to make up for the refinery outage. Here in NYC, gas orices are down about 20 cents in the last month or so and that should come in another 20 cents soon. By October, we will be on the cheaper gas blend for another 15 cents cheaper (all else equal).
Psephos
(8,032 posts)I Me Mine. I Me Mine. I Me Mine.
Nero fiddles.
yeoman6987
(14,449 posts)When barrels of oil goes up they are quick to add to the price but going down they take their good ole time. That should be a crime.
Spitfire of ATJ
(32,723 posts)Lucky Luciano
(11,242 posts)Last edited Sat Aug 22, 2015, 11:36 AM - Edit history (1)
...in EM countries (eg a China!). The EM countries are having a very rough go of it. Starting to feel a bit like the Asian Crisis in 1997-8.
Spitfire of ATJ
(32,723 posts)And only on Wall Street is the cost of oil dropping considered to be "bad news".
Lucky Luciano
(11,242 posts)The U.S. Is still in the best shape relative to Europe and Asia, but the fact that oil is down along with other commodities does make me worry about demand legitimately contracting.
The Fed will delay raising rates until next year at least.
Spitfire of ATJ
(32,723 posts)It's been 10 years since the SUV craze and there aren't as many on the road.
Also, people want good mileage again.
Lucky Luciano
(11,242 posts)Last edited Sat Aug 22, 2015, 11:37 AM - Edit history (1)
China's economy is slowing...their Yuan devaluation gave it away along with their terrible PMI number last night. By demand, I don't mean Joe Schmoe driving his SUV. I mean entire economies / particularly in the EM.
Spitfire of ATJ
(32,723 posts)Lucky Luciano
(11,242 posts)Just pointing out the symptom of slowing economies which lead to unemployment etc.
Spitfire of ATJ
(32,723 posts)NickB79
(19,114 posts)At the same time: http://www.nytimes.com/2015/05/15/automobiles/wheels/with-gas-prices-less-of-a-worry-buyers-pass-hybrids-cars-by.html?_r=0
With bargain gasoline prices putting more money in the pockets of Americans, owners of hybrids and electric vehicles are defecting to sport utility vehicles and other conventional models powered only by gasoline, according to Edmunds.com, an auto research firm.
There are limits, it appears, to how far consumers will go to own a car that became a rolling statement of environmental concern. In 2012, with gas prices soaring, an owner could expect a hybrid to pay back its higher upfront costs in as little as five years. Now, that oft-calculated payback period can extend to 10 years or more.
Spitfire of ATJ
(32,723 posts)6chars
(3,967 posts)Now goes down another ten dollars at the end, but definitely gives perspective. This has been a major drop in the last year. But there also are books and busts.
thelordofhell
(4,569 posts)We gotta keep those pump prices UP!!!
mike in raleigh
(59 posts)Motor oil is still expensive -$4 to 5 dollars a quart in most places? After all, motor oil is made from petroleum, too, so it should be dropping in price. Why isn't it?
Spitfire of ATJ
(32,723 posts)bpositive
(423 posts)When gas was 1.50 a gallon or less? Anyway to find this info?
Lucky Luciano
(11,242 posts)NickB79
(19,114 posts)With the difference used to finance low-carbon, public transport options and subsidies on EV and hybrid vehicles.
yeoman6987
(14,449 posts)We are getting screwed by the gas companies who are making an even bigger profit then before.
NickB79
(19,114 posts)And at $1.50/gal gas, and you'll see even more SUV's and trucks on the roads than we already see.
Hell, even $3/gal gas has led to a gas-guzzler resurgence: http://www.usnews.com/news/business/articles/2015/08/03/us-auto-sales-strong-in-july-on-suv-luxury-demand
Is that what you prefer?
yeoman6987
(14,449 posts)Rich and upper middle class don't care about gas prices and SUVs and will drive then regardless of price of gas. The single mom of 3 kids who has 4 dollar gas that you want would be wonderful going to her 8 dollar an hour job. How kind of you.
Travis_0004
(5,417 posts)Its easy enough to suggest subsides, but to somebody who can barely afford to pay for a 98 civic, the thought of buying a new prius is just about impossible.
NickB79
(19,114 posts)Unless we cut our carbon emissions DRASTICALLY and IMMEDIATELY, literally billions of people around the planet will suffer. Many of them will die.
Ed Suspicious
(8,879 posts)What a sham.
Purveyor
(29,876 posts)Peeked at 2.99 last week.
Historic NY
(37,449 posts)what the bullshit excuse this week; refinery burning, war, refinery shut down....were on to these f---ers.
emsimon33
(3,128 posts)However, the minute they go up, the prices at the gas pump go up...or even if there is a chance the price per barrel will go up the price at the pump goes up.