Oil prices could fall to $10?

$5 fill ups!!! DEAL.

 

Maybe $5.00 a gallon as well!!

 

Either way I'm not too worried.

$5 a gallon is why I bought the Prius.

 

You are certainly correct. With a Prius you are very well protected no matter what the price at the pump does and you have a super reliable car as well. No car repairs for you for a long, long time.

 

The EIA crude oil data supports the gross facts. The '$10' was a speculation so I'm less inclined to claim it is a future wholesale price.

My reading is the $10-20 price is the claimed cost of production.

Bob Wilson

 

Anyone who really believes the price of oil is going to plummet should be selling futures. Unfortunately there are now two refineries in California not buying crude.

 

$0.40+ a gal is what our prices went up by over the last couple weeks....

And do you know what pisses me off more than anything.... I now only have to fill up bi weekly (weekly with my Charger in the past), so I missed getting to fill up at the rock bottom price a couple weeks ago.

Lol.

 

Similarly, fuel prices in my area quit dropping on Feb 2, when the crude prices suddenly spiked from below $45 to above $50. Since then, our gas has risen 30 cents in 20 days.

Whether that game of chicken lasts one more week or two more years, it will be temporary. Once it is over, and the world economy starts to recover again, those who stayed faithful to long term conservation will be well situated.

 

I live in a Chicago suburb. The low here hit $2.00 a gallon for just a few days. Now it is flirting with $2.50 a gallon. We'll see how it looks when it gets close to the driving season. My guess is they will find a reason to increase it. They always do.

 

But this chicken game involves more than one chicken. Beyond U.S. shale, there is also Canadian tar sand, and the budget requirements of ISIS/ISIL, Vladimer Putin, Iran, etc.

To mangle another metaphor, the Saudis may be in a position to take down a half dozen birds with a single stone.

 

This data from the Energy Information Agency shows recent performance. This data is through November 2014. It would also be interesting to map hybrid sales on the same scale.

Here is the whole record:

The USA population growth has been significant since 1970.

Is your speculation that the current oil prices will flatten the production curve so we will see declines in the next 18 months?

I don't know but it is an interesting thought.

Bob Wilson

 

Oil prices could fall to $10?
No.
You can't even afford to give it away at $10.
The real-world floor used to be in the mid teens - a quarter century ago.
Now?
Maybe in the thirties.

 

Do not confuse the market for oil with the market for gasoline.

Our friends in California should see rising gasoline prices because two refineries that produce their gas are shut down. Once inventories are reduced can the remaining refineries increase production? I doubt it has they generally run close to 100%.

Exploration and development have been cancelled or delayed on the order of tens of billions of dollars. It takes a couple of years before a well comes on line so I don't expect to see an effect on production before 2017. All that unspent money is depressing wages, increasing unemployment and putting a drag on the economy.

Russia is not fine. They have high inflation, high interest rates, a recession, and limited access to hard currency.

The Keystone pipeline isn't going to make oil any less expensive to pump out of the ground. Will it lower transportation costs for Canadian crude?

PA increased their gas tax this year. If you buy enough it may be worth the bridge toll to come to NJ just for gas.

 

I remember hearing about the gas tax hike on the news a while back but didn't really pay attention...

So after reading your post I looked into it and WOW! PA is going to be surpassing California for the #1 most taxed state for Gasoline. They are spreading out the hike over the next 3 yrs but darn that blows.

Pa. gas tax to rise Jan. 1, again in 2015 and '17