General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsAnyone notice the price of oil has collapsed
lots of reasons, over production; weak demand, especially in China.
http://www.cbsnews.com/news/oil-collapse-caps-dows-worst-week-in-three-years/
SomethingFishy
(4,876 posts)in a long long time..
Not gonna complain..
seveneyes
(4,631 posts)"They" still have us by the short hairs.
bigwillq
(72,790 posts)Connecticut loves its taxes. We're paying a lot of them in this state, especially for gasoline.
edhopper
(33,543 posts)it's what it says about the world economy.
Brother Buzz
(36,407 posts)By Naomi Christie Dec 12, 2014 12:26 PM ET
The number of supertankers sailing to China jumped to a record in ship-tracking data amid signs that the oil-price crash is spurring the Asian nation to stockpile.
There were 83 very large crude carriers bound for Chinese ports, according to shipping signals from IHS Maritime compiled by Bloomberg at about 8:30 a.m. today in London. The ships would transport 166 million barrels, assuming standard cargoes, the largest number in data starting in October 2011. The cost of hiring the vessels surged to the highest in almost five years, according to Baltic Exchange data.
The International Energy Agency, a Paris-based adviser to 29 nations, said in a report today that China may have added to strategic crude stockpiles last month, after pausing the activity in October. Oil plunged into a bear market this year, with Saudi Arabia and other nations in the Organization of Petroleum Exporting Countries offering few signs they will tackle a global glut.
We see cargoes being picked up to be put into storage in China predominantly, Erik Folkeson, a shipping analyst at Stockholm-based Swedbank AB, said by phone today. The steep reduction in crude prices and continued output of crude has, in my view, triggered stock building.
Strategic Reserves
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China has to buy at least another 50 million barrels of crude in 2015 for its strategic petroleum reserve, according to Amrita Sen, chief oil market analyst at Energy Aspects Ltd., a London-based consultant. Plans to expand commercial crude inventories could raise that total above 100 million barrels, depending how quickly the country can build new storage units, she said.
more...
http://www.bloomberg.com/news/2014-12-12/record-oil-tankers-seen-sailing-to-china-amid-stockpiling-signs.html
edhopper
(33,543 posts)I have been reading about weaker demand.
What do you think is behind the price drop?
Brother Buzz
(36,407 posts)China sees the flip from a sellers to a buyers market as an opportunity, a no-brainer.
edhopper
(33,543 posts)Is elsewhere. Europe?
Trillo
(9,154 posts)regular was $2.99.
50% more than elsewhere in the U.S., apparently. We have special gas, to keep the environment cleaner. We also have fracking, to contaminate water tables. Doesn't make a lot of sense, until you ask who is paying more, and who gets to pollute.
alcibiades_mystery
(36,437 posts)Though I filled up in Schaumburg for $2.72 last Saturday. That was the first time I paid under $3.00 for gas in years.
RebelOne
(30,947 posts)I was able to get 3/4 of a tank yesterday for $12. I think the price was $2.49 a gallon.
roamer65
(36,745 posts)The collapse of the oil price has credit default swaps going through the roof on energy sector bonds, the sovereign debt of certain OPEC nations (i.e Venezuela) and non-OPEC oil producing nations as well (i.e Russia). The mass layoffs in the U.S. shale oil and Canadian tar sands oil sectors should start in early 2015. Credit markets are already drying up in response, as this takes on financial "contagion-like" traits.
Jesus Malverde
(10,274 posts)It could be a recession for texas and other energy producers but a win for elsewhere.