Current Oil Price

Discussion of the latest Peak Oil news (please also check the Website News area below)

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raspberry-blower
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Post by raspberry-blower »

Currently both WTI and Brent have dropped below $30
A common mistake that people make when trying to design something completely foolproof is to underestimate the ingenuity of complete fools - Douglas Adams.
raspberry-blower
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Post by raspberry-blower »

Brent ends the week on $29.25
WTI closes on $29.72
A common mistake that people make when trying to design something completely foolproof is to underestimate the ingenuity of complete fools - Douglas Adams.
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PS_RalphW
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Post by PS_RalphW »

Yet today I was charged £1.24 /l for diesel on the motorway. That is 20% higher than local prices.
johnhemming2
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Post by johnhemming2 »

PS_RalphW wrote:Yet today I was charged £1.24 /l for diesel on the motorway. That is 20% higher than local prices.
And ...
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PS_RalphW
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Post by PS_RalphW »

http://peakoil.com/publicpolicy/dallas- ... -to-market

This is the US Government realising that shale oil is too big to fail. It is acknowledging that oil is not a free market.

I fully expected this when prices started to fall. Profits to the rich on the way up, bail outs paid by the poor on the way down.
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biffvernon
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Post by biffvernon »

johnhemming2
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Post by johnhemming2 »

The same RBS advisor. I have not sold anything.
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PS_RalphW
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Post by PS_RalphW »

Brent touches $28.
AutomaticEarth
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Post by AutomaticEarth »

PS_RalphW wrote:Brent touches $28.
That's got to be the lowest since this thread started isn't it?
johnhemming2
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Post by johnhemming2 »

probably the lowest since the creation of the forum.
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frank_begbie
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Post by frank_begbie »

biffvernon wrote:Sell everything.

http://fortune.com/2016/01/12/sell-everything/
“Recessions—and depressions—occur because excesses in capacity have to be purged from the system. We do not see how the present excess supply condition in the commodity production will be reversed until and unless capacity is scrapped,” he writes. “That will hurt.”

Wtf does that mean?

Wish it out of existence? :lol:
"In the beginning of a change, the patriot is a scarce man, brave, hated, and scorned. When his cause succeeds however, the timid join him, for then it costs nothing to be a patriot."
johnhemming2
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Post by johnhemming2 »

The excess production (extraction) capacity is under 3%. The taps can be switched off to some extent and obviously plant can be mothballed. There is, of course, a financial argument for that.
raspberry-blower
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Post by raspberry-blower »

Interesting article from Zero Hedge: The "Real" Price of oil is Below $17
Slumping prices are a critical signal that the boom in lending in China is “unwinding,” according to Adair Turner, chairman of the Institute for New Economic Thinking
If Chinese demand was driving the oil price higher then this slump is set to continue for sometime yet. It is possible that we could see oil prices even drop below this figure.

However, for some low grade oil producer in the US is producing oil that worth less than nothing
A common mistake that people make when trying to design something completely foolproof is to underestimate the ingenuity of complete fools - Douglas Adams.
johnhemming2
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Post by johnhemming2 »

Having to pay people to take away oil is definitely a financial incentive for mothballing.
raspberry-blower
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Post by raspberry-blower »

johnhemming2 wrote:Having to pay people to take away oil is definitely a financial incentive for mothballing.
It all depends on the terms and conditions - if said company has issued high yield bonds and the bank tells them or they are legally required by terms of the bond issuance that they have to continue producing even if the company is losing money hand-over-fist then they will continue producing.

Bizarre? Yes
Counter-intuitive? Yes
Illogical? Yes

There are two options
1) Default - go into Chapter 11/voluntary liquidation/come to arrangement with creditors
2) Merge with another company with the express aim of writing down debts - influx of new capital etc.

Whatever way you look at it the investors will get a severe haircut.
Whatever way you look at it, there will be workers who will be made redundant.

It's all a matter of scale...
A common mistake that people make when trying to design something completely foolproof is to underestimate the ingenuity of complete fools - Douglas Adams.
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