Current Oil Price

vtsnowedin · Post by **vtsnowedin** » 14 Nov 2014, 03:05

Enjoy it while it lasts and hope it runs through the winter. Don't expect it to last through next year. There is no good reason for it to be this low and it will not survive.

PS_RalphW · Post by **PS_RalphW** » 14 Nov 2014, 15:48

Oil has rebounded by $2 whilst sterling is down further against the dollar.

I guess yesterday's sharp drop was a short term factor like expiry of the monthly contract or similar.

biffvernon · Post by **biffvernon** » 15 Nov 2014, 08:42

Rebounded by $2? The WTI ticker has dropped almost $2, now at $75.82

PS_RalphW · Post by **PS_RalphW** » 17 Nov 2014, 09:15

I think there was some attempt to sell the dollar on Friday and prop up the price of oil.

Normal service has been resumed this morning

biffvernon · Post by **biffvernon** » 17 Nov 2014, 12:15

Another article warning about US debt default risk in fracking industry in the Telegraph: http://www.telegraph.co.uk/finance/news ... waits.html

This graph needs it's $80 line dropping to $75 now, putting a big part of the industry in trouble.

frank_begbie · Post by **frank_begbie** » 20 Nov 2014, 12:17

Now if we could just have another 9/11, we'll have a great excuse to invade Saudi Arabia

emordnilap · Post by **emordnilap** » 20 Nov 2014, 12:22

frank_begbie wrote:Now if we could just have another 9/11, we'll have a great excuse to invade Saudi Arabia

An excuse for a US invasion? What a novel idea!

PS_RalphW · Post by **PS_RalphW** » 20 Nov 2014, 13:25

There is no one oil price where shale oil or any individual oil well becomes 'uneconomic'. Each well has unique characteristics, and each one is drilled, fracked, pumped or abandoned by an imperfect set of decisions using incomplete data relating to financial risk against future gain and will involve many financial, legal, scientific and downright criminal factors weighed on against another, before a human being comes down on a decision which has as much to do with how good lunch was.

The financial factors will also be manipulated at a higher political level, resulting in behind the scenes interventions, in what is seen to be in the best short term interests of the human beings making the decisions.

All this machination and blind prejudice is 'the invisible hand of the market'.

Shale drilling is just beginning to shows signs of tailing off, but that may just be the usual winter slowdown kicking in. It will be a few months before we can separate signal from the noise.

edit

It is not just Shale that is hurting

http://peakoil.com/production/shell-may ... -oil-slump

PS_RalphW · Post by **PS_RalphW** » 21 Nov 2014, 13:25

OIl prices and European shares up sharply by $2 afte CHina cuts interest rates.

I think China has learned from OECD policy about keeping bubbles inflated is heading to join the ZIRP gang.

Edit
And down again for zero net change by the end of the day.

biffvernon · Post by **biffvernon** » 27 Nov 2014, 07:54

Still sliding... WTI now $73.69

Automatic Earth continues busily http://www.theautomaticearth.com/the-20 ... explained/

emordnilap · Post by **emordnilap** » 27 Nov 2014, 10:52

“Everybody is trying to put a very happy spin on their ability to weather $80 oil, but a lot of that is just smoke,” Dan Dicker, president of MercBloc, said in an interview with Bloomberg. “The shale revolution doesn’t work at $80, period.”

Source

Yet...

The shale revolution and the end of peak oil fears

PS_RalphW · Post by **PS_RalphW** » 27 Nov 2014, 15:15

Brent touches $75 as OPEC confirms no quota cut.

They are have been producing 1Mbpd over quota for ages. Quotas are purely a political statement in any case.

And the statement is

"We are not going to cut our market share so that you can sell your overpriced gassy shale as if it was old peculier "

PS_RalphW · Post by **PS_RalphW** » 27 Nov 2014, 16:20

bye bye $74

raspberry-blower · Post by **raspberry-blower** » 27 Nov 2014, 21:06

biffvernon wrote:Still sliding... WTI now $73.69

Automatic Earth continues busily http://www.theautomaticearth.com/the-20 ... explained/

Yet more analysis from TAE: The Price of Oil Exposes the True State of the Economy

Ilargi wrote:We should be glad the price of oil has fallen the way it has (losing another 6% today as I write this). Not because it makes the gas in our cars a bit cheaper, that’s nothing compared to the other service the price slump provides. That is, it allows us to see how the economy is really doing, without the multilayered veil of propaganda, spin, fixed data and bailouts and handouts for the banking system.

It shows us the huge extent to which consumer spending is falling, how much poorer people have become as stock markets set records. It also shows us how desperate producing nations have become, who have seen a third of their often principal source of revenue fall away in a few months’ time. Nigeria was first in line to devalue its currency, others will follow suit.

3rdRock · Post by **3rdRock** » 28 Nov 2014, 09:04

http://www.bbc.co.uk/news/business-30223721

The price of oil slumped after the Opec oil producers' cartel decided not to cut output at its meeting in Vienna.

Opec's secretary general Abdallah Salem el-Badri said they would not try to shore up prices by reducing production.