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Purveyor

(29,876 posts)
Fri Aug 21, 2015, 07:49 PM Aug 2015

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 don’t 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

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Oil Prices Trade Below $40 A Barrel For First Time Since 2009 (Original Post) Purveyor Aug 2015 OP
And our gas prices go up Duckhunter935 Aug 2015 #1
I don't know where you live, but our gasoline prices have been dropping all year. FLPanhandle Aug 2015 #2
Oklahoma Duckhunter935 Aug 2015 #3
gas has been $2.59 forever here TheFarseer Aug 2015 #25
They will come down soon for you. Lucky Luciano Aug 2015 #7
You're worried about YOUR gasoline price? Do you realize what global problem this drop signals? Psephos Aug 2015 #22
I agree. Gas should be a 1.50 a gallon at most yeoman6987 Aug 2015 #27
They shouldn't compare prices to the time of the crash. Spitfire of ATJ Aug 2015 #4
They should. Lower oil prices are partly caused by demand destruction Lucky Luciano Aug 2015 #6
Under Dubya oil was going for almost $150 a barrel.... Spitfire of ATJ Aug 2015 #8
Oil going down like this is a symptom of other problems. Lucky Luciano Aug 2015 #9
Oil is going down because production is high and what's wrong with lowering demand? Spitfire of ATJ Aug 2015 #10
Production is high...but there is a demand problem. Lucky Luciano Aug 2015 #11
Still, I see no problem with a lowering of oil consumption. Spitfire of ATJ Aug 2015 #14
Agreed in and of itself. Lucky Luciano Aug 2015 #16
The investment class loves to fear monger about jobs to justify their greed. Spitfire of ATJ Aug 2015 #18
The truck and SUV craze is far from over, unfortunately NickB79 Aug 2015 #19
This is the target market... Spitfire of ATJ Aug 2015 #21
Thanks for the interesting graph. 6chars Aug 2015 #28
Quick!! Shut down some refineries!! thelordofhell Aug 2015 #5
Then how come mike in raleigh Aug 2015 #12
Because we are slaves to the rich. Spitfire of ATJ Aug 2015 #15
Okay, how much was a barrel of oil bpositive Aug 2015 #13
Roughly $28-30...possibly during the winter too (in LA/NY) Lucky Luciano Aug 2015 #17
Gas prices should be pegged to $4/gal, and then adjusted for inflation monthly NickB79 Aug 2015 #20
Oh no way. That is totally ridiculous. It should be 1.50 at most right now yeoman6987 Aug 2015 #29
What is ridiculous is the amount of carbon we're putting out NickB79 Aug 2015 #33
I would perfer not screwing over the poor and working class yeoman6987 Aug 2015 #34
I'm sure a lot of low income people who don't live next to public transportation would love that Travis_0004 Aug 2015 #30
And the hundred million people in Bangladesh who's homes will be underwater as the ice caps melt? NickB79 Aug 2015 #32
Gas prices are at our summer high and rising. Some bullshit about BP refinery problems. Ed Suspicious Aug 2015 #23
Same here. You must be around the Michigan/midwest area, eh? Started to go down some here at 2.79. Purveyor Aug 2015 #24
Its still high a the pump given the barrel price.... Historic NY Aug 2015 #26
No reflection at the gas pump emsimon33 Aug 2015 #31

FLPanhandle

(7,107 posts)
2. I don't know where you live, but our gasoline prices have been dropping all year.
Fri Aug 21, 2015, 07:58 PM
Aug 2015

It's now under $2.40 here in Florida.

TheFarseer

(9,308 posts)
25. gas has been $2.59 forever here
Sat Aug 22, 2015, 10:48 PM
Aug 2015

Totally ignoring how the bottom has fallen out on oil prices. Can you say collusion?

Lucky Luciano

(11,242 posts)
7. They will come down soon for you.
Fri Aug 21, 2015, 08:59 PM
Aug 2015

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)
22. You're worried about YOUR gasoline price? Do you realize what global problem this drop signals?
Sat Aug 22, 2015, 01:03 AM
Aug 2015

I Me Mine. I Me Mine. I Me Mine.

Nero fiddles.

 

yeoman6987

(14,449 posts)
27. I agree. Gas should be a 1.50 a gallon at most
Sat Aug 22, 2015, 10:59 PM
Aug 2015

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.

Lucky Luciano

(11,242 posts)
6. They should. Lower oil prices are partly caused by demand destruction
Fri Aug 21, 2015, 08:52 PM
Aug 2015

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)
8. Under Dubya oil was going for almost $150 a barrel....
Fri Aug 21, 2015, 09:10 PM
Aug 2015


And only on Wall Street is the cost of oil dropping considered to be "bad news".

Lucky Luciano

(11,242 posts)
9. Oil going down like this is a symptom of other problems.
Fri Aug 21, 2015, 09:16 PM
Aug 2015

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)
10. Oil is going down because production is high and what's wrong with lowering demand?
Fri Aug 21, 2015, 09:35 PM
Aug 2015

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)
11. Production is high...but there is a demand problem.
Fri Aug 21, 2015, 09:51 PM
Aug 2015

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.

Lucky Luciano

(11,242 posts)
16. Agreed in and of itself.
Fri Aug 21, 2015, 10:14 PM
Aug 2015

Just pointing out the symptom of slowing economies which lead to unemployment etc.

NickB79

(19,114 posts)
19. The truck and SUV craze is far from over, unfortunately
Fri Aug 21, 2015, 11:39 PM
Aug 2015
http://www.autoblog.com/2015/08/03/july-2015-auto-sales-by-the-numbers/

More than halfway through the 2015 calendar year, automotive sales remain steadfastly strong. As has been the case all year long, light truck sales are boosting the bottom lines of pretty much every automaker that does business in the United States. Light truck sales were up around 11 percent last month, when compared to the same period exactly one year ago. Demand for cars (sedans, hatchbacks, etc.) was down almost two percent, overall, but because trucks, crossovers and SUVs are selling so well, the industry as a whole surged over five percent in July.


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

Affordable gasoline is making hybrid car owners rethink their loyalty.

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.


6chars

(3,967 posts)
28. Thanks for the interesting graph.
Sat Aug 22, 2015, 11:01 PM
Aug 2015

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.

mike in raleigh

(59 posts)
12. Then how come
Fri Aug 21, 2015, 09:56 PM
Aug 2015

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?

NickB79

(19,114 posts)
20. Gas prices should be pegged to $4/gal, and then adjusted for inflation monthly
Fri Aug 21, 2015, 11:43 PM
Aug 2015

With the difference used to finance low-carbon, public transport options and subsidies on EV and hybrid vehicles.

 

yeoman6987

(14,449 posts)
29. Oh no way. That is totally ridiculous. It should be 1.50 at most right now
Sat Aug 22, 2015, 11:03 PM
Aug 2015

We are getting screwed by the gas companies who are making an even bigger profit then before.

NickB79

(19,114 posts)
33. What is ridiculous is the amount of carbon we're putting out
Sun Aug 23, 2015, 12:13 PM
Aug 2015

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)
34. I would perfer not screwing over the poor and working class
Sun Aug 23, 2015, 01:54 PM
Aug 2015

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)
30. I'm sure a lot of low income people who don't live next to public transportation would love that
Sat Aug 22, 2015, 11:03 PM
Aug 2015

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)
32. And the hundred million people in Bangladesh who's homes will be underwater as the ice caps melt?
Sun Aug 23, 2015, 12:08 PM
Aug 2015

Unless we cut our carbon emissions DRASTICALLY and IMMEDIATELY, literally billions of people around the planet will suffer. Many of them will die.

 

Purveyor

(29,876 posts)
24. Same here. You must be around the Michigan/midwest area, eh? Started to go down some here at 2.79.
Sat Aug 22, 2015, 03:37 PM
Aug 2015

Peeked at 2.99 last week.

Historic NY

(37,449 posts)
26. Its still high a the pump given the barrel price....
Sat Aug 22, 2015, 10:56 PM
Aug 2015

what the bullshit excuse this week; refinery burning, war, refinery shut down....were on to these f---ers.

emsimon33

(3,128 posts)
31. No reflection at the gas pump
Sat Aug 22, 2015, 11:52 PM
Aug 2015

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.

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