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re: Oil Price War Ends With Historic OPEC+ Deal to Cut Output
Posted on 4/12/20 at 5:15 pm to Redbonebandit
Posted on 4/12/20 at 5:15 pm to Redbonebandit
quote:
It is because we are all consumers of goods impacted by oil prices. High prices benefit a few special interests.
The national economy as a whole would have been better off with dirt-cheap oil in the recovery process.
1
Posted on 4/12/20 at 5:17 pm to East Coast Band
quote:
isn't demand off more than 10%
Of course.
But, won't demand for refined products will rise. This helps now and going forward.
Posted on 4/12/20 at 5:19 pm to hollowpoint
Amazing whet a business man in the White House can accomplish. Won’t find it on CNN, but it looks liked he stepped in & brokered the deal.
Posted on 4/12/20 at 5:20 pm to hollowpoint
Filled up my Tahoe for $30 yesterday. Was fun while it lasted
Posted on 4/12/20 at 5:27 pm to Redbonebandit
quote:
It is because we are all consumers of goods impacted by oil prices. High prices benefit a few special interests.
Correct. Like my job is somewhat directly influenced by oil revenues but overall the economy and people in general should be better off with cheaper oil. The price of oil is baked into way more than just gasoline.
I don't understand why the media should be praising Trump for raising oil prices.
This post was edited on 4/12/20 at 5:29 pm
Posted on 4/12/20 at 5:28 pm to BeepNode
quote:
Seems like lower prices for raw materials would be a better thing for the economy than higher oil prices?
The problem revolves around the domestic industry. Specifically, the cost of exploration and drilling. At current prices, the US domestic industry will shrink significantly. Then we will again be importing a significant portion of our oil supply.
The cost of production for current wells will still make money. The payback time on new developments is another matter Particularly when considering the uncertainty with each well.
So, yes, as a feed stock and fuel cost, lower prices help most of the economy not dependent on oil production. In terms of our dependence on other countries, it’s not so good.
Posted on 4/12/20 at 5:28 pm to hollowpoint
Mexico made out like a bandit only cutting 100k bbl/day
Posted on 4/12/20 at 5:34 pm to mdomingue
quote:
In terms of our dependence on other countries, it’s not so good.
As long as we still have oil in the ground we won't be truly dependent on other countries. If there's a war or something and OPEC is against us for some reason (unlikely) we could quickly extract the oil.
If anything extracting the lowest hanging fruit now makes us more dependent on other countries in the long-run.
You could charge a 10% tax on all oil based products in America and use that to pay 100% of every salary in O&G. That alone should tell you that we're dealing with a broken window fallacy.
On top of that, there's still a potential for downstream O&G (refineries) to thrive as the prices of their main raw material becomes cheaper.
This post was edited on 4/12/20 at 5:36 pm
Posted on 4/12/20 at 5:35 pm to idlewatcher
You do realize they only produce like 1.7 mmbd right?
Posted on 4/12/20 at 5:42 pm to kywildcatfanone
quote:
$2/gallon gas is more than enough for everyone to make tons of money.
frick your arbitrary price point
Posted on 4/12/20 at 5:47 pm to hollowpoint
There is zero chance that this holds. Countries need cash NOW to deal with the Chinese Flu problems. And nobody is buying oil like they used to just a few weeks ago. The producers are going to cheat like crazy.
Posted on 4/12/20 at 7:00 pm to hollowpoint
Trump wins again!!
Posted on 4/12/20 at 7:11 pm to hollowpoint
Everything helps. The O&G industry was already decimated as far as unemployment going in to this pandemic.
Posted on 4/12/20 at 8:17 pm to hollowpoint
Gas jumped to $3.50/gal on the news.
Posted on 4/12/20 at 8:20 pm to White Bear
By what about the crawfish prices?
Crawfish futures up?
Crawfish futures up?
Posted on 4/12/20 at 8:22 pm to kywildcatfanone
quote:
$2/gallon gas is more than enough for everyone to make tons of money.
Enlighten us, particularly those of us actually in the business.
Posted on 4/12/20 at 8:25 pm to kywildcatfanone
You sir are clueless
Posted on 4/12/20 at 8:37 pm to Obtuse1
Yeah, outside of LA/TX and some of the shale extracting counties around the country, this isn't good news. But we're on a board based out of LA, so I guess we shouldn't expect people to be disappointed.
Posted on 4/15/20 at 9:54 am to mmmmmbeeer
Can anyone smarter than I shed light on why oil prices haven’t really changed since the OPEC agreement?
Posted on 4/15/20 at 9:55 am to okietiger
Probably has a lot to do with current demand secondary to the virus.
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