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Oil prices record steepest annual fall since Covid pandemic

Posted on 1/1/26 at 2:28 pm
Posted by Major Dutch Schaefer
Location: Classified
Member since Nov 2011
38326 posts
Posted on 1/1/26 at 2:28 pm
Truck Nuts {Off} On

quote:

Oil markets have recorded their steepest annual fall since the Covid pandemic and could be on track to plummet further as oil producers continue to pump more crude than needed by the global economy.

Oil prices slumped by almost 20% in 2025, marking the biggest annual loss since 2020 and the first time that the oil market has recorded three consecutive years of annual losses.

The steady slide in prices has emerged despite ongoing conflict in some of the world’s most important energy-producing regions due to a “cartoonishly” oversupplied market, according to analysts.

Crude fell below $60 a barrel for the first time in almost five years last month as political leaders began to inch towards a Russia-Ukraine peace deal which could increase the glut in the global market if western sanctions are lifted on Russian exports.
Posted by kywildcatfanone
Wildcat Country!
Member since Oct 2012
136389 posts
Posted on 1/1/26 at 2:31 pm to
Good. Gas should be no more than $2 gallon. Everyone makes bank and the consumer isn't raped.
Posted by Potchafa
Avoyelles
Member since Jul 2016
4213 posts
Posted on 1/1/26 at 2:32 pm to
Gas Price People.....lol!
Posted by TDFreak
Coast to Coast - L.A. to Chicago
Member since Dec 2009
9022 posts
Posted on 1/1/26 at 2:39 pm to
This is more of a money board topic, but the contrarian in me says it’s only a matter of time before oil rockets back up. Everyone and I mean everyone is bearish on oil. That’s typically when the elites are quietly entering positions.
Posted by Everyday Is Saturday
Member since Dec 2025
15 posts
Posted on 1/1/26 at 3:15 pm to
quote:

Gas should be no more than $2 gallon.


quote:

Everyone makes bank and the consumer isn't raped.


$2 X 42 gallons/barrel = $84 barrel

Gulf of America development breakeven = $60 barrel

$24 left to transport to refinery, refining process, to transport to retail site, to market/advertise and for all to make reasonable return on capex / capital employed

…after paying all federal and state taxes.

Everyone DOES NOT make bank. Fact.

S&P 500 has returned cumulative 22X these last 30 years. Major oil stock 10X over same period.

Why the difference? Oil price / cycle.

“Bank” is made outside oil industry / segment more often than not.
Posted by OysterPoBoy
City of St. George
Member since Jul 2013
43215 posts
Posted on 1/1/26 at 3:24 pm to
Just stocked up on 20L from Costco.
Posted by TJG210
New Orleans
Member since Aug 2006
29291 posts
Posted on 1/1/26 at 3:24 pm to
quote:

Everyone and I mean everyone is bearish on oil. That’s typically when the elites are quietly entering positions


Companies aren’t investing in capex at all, when the worm turns its going to be very painful.
This post was edited on 1/1/26 at 3:29 pm
Posted by JohnnyKilroy
Cajun Navy Vice Admiral
Member since Oct 2012
40364 posts
Posted on 1/1/26 at 3:27 pm to
quote:

Gas should be no more than $2 gallon. Everyone makes bank


Are you in the industry?
Posted by Macavity92
Member since Dec 2004
6333 posts
Posted on 1/1/26 at 3:35 pm to
Except that more goes into the price of gas than the price of oil. There’s state taxes, individual state emission standards, refinery capacity, to name a few.

Why do you think California gas prices are so much higher than Louisiana gas prices when the price of a barrel of oil is more or less the same in both states?
Posted by Jimmyboy
Member since May 2025
2140 posts
Posted on 1/1/26 at 3:35 pm to
Posted by SlidellCajun
Slidell la
Member since May 2019
16095 posts
Posted on 1/1/26 at 3:37 pm to
Drill baby drill
Posted by SlidellCajun
Slidell la
Member since May 2019
16095 posts
Posted on 1/1/26 at 3:39 pm to
Cheap oil suffocates Russia and their allies

Posted by Hamma1122
Member since Sep 2016
21983 posts
Posted on 1/1/26 at 4:01 pm to
Stupidity is real
Posted by Everyday Is Saturday
Member since Dec 2025
15 posts
Posted on 1/1/26 at 4:16 pm to
1st reply to OP says…
quote:

Everyone makes bank


Me says…
quote:

Not true. Optimum oil price for all segments in value chain is higher than what yields $2.00 street price


Case in point…
quote:

Except that more goes into the price of gas than the price of oil.


30 years in oil industry (upstream & retail fuels). Tell me about it. I just stripped it down to raw materials to make pernt. Not much else needed but appreciate your help.




This post was edited on 1/1/26 at 4:23 pm
Posted by 2 Jugs
Saint Amant
Member since Feb 2018
2312 posts
Posted on 1/1/26 at 7:20 pm to
quote:

$2 X 42 gallons/barrel = $84 barrel





You need to look up the per barrel output after distillation.
Posted by Oates Mustache
Member since Oct 2011
26100 posts
Posted on 1/1/26 at 7:31 pm to
quote:

Everyone makes bank and the consumer isn't raped.


Tell us you don't know about crack spreads without telling us you don't know about crack spreads.
Posted by Everyday Is Saturday
Member since Dec 2025
15 posts
Posted on 1/1/26 at 8:15 pm to
quote:

You need to look up the per barrel output after distillation


Yield less than 100%…say what? Kidding.

Making a simple pernt with simple math…

That is…no, no on the everyone making bank comment.
Posted by honeybadger07
The Woodlands
Member since Jul 2015
4005 posts
Posted on 1/1/26 at 8:20 pm to
Everyone does not make bank at those prices.

You are ill informed.
Posted by honeybadger07
The Woodlands
Member since Jul 2015
4005 posts
Posted on 1/1/26 at 8:22 pm to
Clearly he is not.
Posted by 2 Jugs
Saint Amant
Member since Feb 2018
2312 posts
Posted on 1/2/26 at 6:04 am to
42 gallon barrel of oil yields at optimum, 20 gallons of gasoline, 9 gallons of diesel and 4 gallons of jet fuel/kerosene, et al.


Use the correct numbers for your argument.
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