Oil Continues Drop After Hitting Six-Year Low

[Jeff]

So the story says oil is at a 6 year low and yes gas prices have dropped but why not by much more ? If anything happens to make the price of a barrel of oil rise ( even a couple of cents ) you see that immediately at the pump, we are now at a 6 year low and although gas has dropped it did go up about 20 cents a gallon here last week although it has since dropped backed down to where it was.


Oil prices fell 2 percent on Monday, with U.S. crude hitting six-year lows, on signs of higher output in the United States and Libya and a possible nuclear deal that could end sanctions for Iran, allowing more of its oil into the market.
A market data provider estimated a fresh build of more than 3 million barrels at the Cushing, Oklahoma delivery point for U.S. crude futures last week, traders said, adding to worries that stockpiles in the United States could hit record highs for a tenth straight week.
In Libya, output has risen to around 490,000 barrels per day (bpd), double that of a few weeks ago, an industry source said.



http://www.foxbusiness.com/markets/2015/03/16/oil-falls-on-supply-glut-iran-nuclear-talks/

[fj1200]

http://charts.gasbuddy.com/ch.gaschart?Country=Canada&Crude=t&Period=12&Areas=USA%20Average,,&Unit=US%20$/G&sizex=.8&sizey=1

Seems like we're due for a bit of a price drop. Damn lefties keeping it high or something.

[gabosaurus]

Big Oil keeps the price artificially high in most instances.
In this case, the glut of oil on the world market is reducing the price.

[avatar4321]

I'm all for it. I don't even care if Obama takes all the credit. We need energy for our economy

[Tyr-Ziu Saxnot]

So the story says oil is at a 6 year low and yes gas prices have dropped but why not by much more ? If anything happens to make the price of a barrel of oil rise ( even a couple of cents ) you see that immediately at the pump, we are now at a 6 year low and although gas has dropped it did go up about 20 cents a gallon here last week although it has since dropped backed down to where it was.




http://www.foxbusiness.com/markets/2015/03/16/oil-falls-on-supply-glut-iran-nuclear-talks/

The convenience of rigged reaction times. Raise the price fast but drop the prices slowly. Gives them more billions doing it that way.
Our government loves it as they tax the livinghell out of it and are in on the profit and the rigging game..Tyr

[Tyr-Ziu Saxnot]

http://charts.gasbuddy.com/ch.gaschart?Country=Canada&Crude=t&Period=12&Areas=USA%20Average,,&Unit=US%20$/G&sizex=.8&sizey=1

Seems like we're due for a bit of a price drop. Damn lefties keeping it high or something.


Wrong-- damn globalists..... ;)

Don't mix up our enemies, although its easy to do. :laugh: -Tyr

[fj1200]

Wrong-- damn globalists..... ;)

Don't mix up our enemies, although its easy to do. :laugh: -Tyr

Yes of course. It's easy to mix them up when everyone is your enemy.

[Tyr-Ziu Saxnot]

Yes of course. It's easy to mix them up when everyone is your enemy.

Are you saying the leftists and the globalists are not?
Or are you just clueless about certain alliances to defeat a common enemy(usa)?-Tyr

[Jeff]

Big Oil keeps the price artificially high in most instances.
In this case, the glut of oil on the world market is reducing the price.

No doubt Gabby, a great example of this is how it goes up for most holidays and before summer vacations.

[fj1200]

Big Oil keeps the price artificially high in most instances.
In this case, the glut of oil on the world market is reducing the price.

Oh yes, of course. They can control the market except when they can't control the market. :rolleyes:


No doubt Gabby, a great example of this is how it goes up for most holidays and before summer vacations.

You mean when there's an expected increase in demand? :scared: But of course we all know the real reason:


The “people traveling more” argument isn’t as important a factor as it used to be.What is a more important reason is environmental regulation. Since 1990 under the Clean Air Act, the Environmental Protection Agency (EPA) has required the use of reformulated gasoline blends during April through September in major metropolitan cities. This fuel costs more to produce, so it leads to higher gas prices during the summer months. The EPA has estimated the impact to be 2 to 4 cents per gallon. However, this only partially explains the summertime increase.
In addition, the reformulated fuel sold during the summer months doesn’t provide purchasers with the same mileage as winter blends. Therefore, more fuel has to be purchased to drive the same miles. This increase in quantity of fuel purchased also leads to higher prevailing market prices.
Economists also found that petroleum companies have more market power during the summer because of this environmental regulation. Rather than have a single summertime blend, each major city has a unique formulation tailored to mitigating its individual air pollution problem. These unique blends make it difficult to ship fuel from surplus to deficit areas, which would moderate price spikes. Consequently, petroleum companies have more regional monopoly power during the summer months than in winter.
Finally, engineering studies have found that it is quite costly for petroleum refiners to switch from one seasonal blend to another. In addition to reconfiguring their production plants, refiners also need additional storage to segregate both blends and prevent comingling. The investment cost of this additional equipment places even greater pressure on summer blend prices.
https://www.ag.ndsu.edu/news/columns/biofuels-economics/new-energy-economics-why-do-gas-prices-rise-in-summer/

:eek: Government.

[fj1200]

Are you saying the leftists and the globalists are not?
Or are you just clueless about certain alliances to defeat a common enemy(usa)?-Tyr

Oh, right. Forgot. Enemies! Enemies! The red-headed step-child cabal is the real brains behind the operations though. They're devious.... and crafty. You're welcome for alerting you to the new enemy just like the old enemy. :)

[Tyr-Ziu Saxnot]

Oh, right. Forgot. Enemies! Enemies! The red-headed step-child cabal is the real brains behind the operations though. They're devious.... and crafty. You're welcome for alerting you to the new enemy just like the old enemy. :)

daz bez da same amigo.. enemy may wear different skin but who cares when the goal is to kill or enslave you..
Seems you may be clueless as to the goal they ALL have amigo..
Here is a hint, it is not a damn game and history reveals a few hundred million people have died not taking
the true goal of their enemy seriously enough!
I never make that mistake. Tis' why I am still above ground..... since I dealt with a damn lot of very bad ass people when a much younger man..
First order of business--- Don't play......--Tyr

[fj1200]

play......--Tyr

:blah: clueless :blah: clueless

[Gunny]

:blah: clueless :blah: clueless

Oil is bought on futures. Yet, let one refinery go down and the gas hike is instantaneous. Let us get an excess and it takes a year to hit.

Double standard?

[fj1200]

Oil is bought on futures. Yet, let one refinery go down and the gas hike is instantaneous. Let us get an excess and it takes a year to hit.

Double standard?

The market is the market. I think there's enough transparency and competition that there are no shenanigans.

[Gunny]

The market is the market. I think there's enough transparency and competition that there are no shenanigans.

Yeah? 40% of the people voted for Obama. That means half this country is stupid. The transparency is easy. But the blinders have to come off.

[fj1200]

Yeah? 40% of the people voted for Obama. That means half this country is stupid. The transparency is easy. But the blinders have to come off.

Well thankfully the entire population doesn't need to be smart for our free (ish) markets to function properly. And every oil company wants to steal even a little bit of market share so there is no gain in delaying a price cut.

[Gunny]

Well thankfully the entire population doesn't need to be smart for our free (ish) markets to function properly. And every oil company wants to steal even a little bit of market share so there is no gain in delaying a price cut.

They don't need to be smart. That would be asking too much. They just don't have to be dumber than red bricks.