Oil prices at 4-year lows on Saudi discount report

[Omaha Steve]

Source: AP-Excite

LONDON (AP) — Oil prices sunk to four-year lows following reports Saudi Arabia, OPEC's largest oil producer, is cutting its prices for customers in the U.S.

By late Tuesday morning London time, a barrel of benchmark crude was down $2.07, or 2.6 percent, at $76.79, its lowest level since September 2010. Meanwhile, Brent crude, the international benchmark, was down $2.14, or 2.5 percent, at $82.63 a barrel, its lowest level since October 2010.

Oil prices have fallen much of this year amid concerns over the global economic recovery as well as excess supplies. The strength of the dollar has also weighed on prices as it makes oil more expensive for international investors.

Fawad Razaqzada, an analyst at Forex.com, says the Saudi report does "not bode well for the future of the cartel."

Read more: http://apnews.excite.com/article/20141104/oil-price-slump-71c998da2b.html

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Remember when the Koch's and other speculators drove the price of oil way up? I hope the speculators are losing ALL of those profits NOW!

[PeoViejo]

1. Oil Futures

The bane of the Speculator, at the moment.

[ForgoTheConsequence]

2. Prices have stayed stagnant here.

I think it's been at 2.99 a gallon for the last month.

[fredamae]

3. Aren't they going after

Fracking Industry Competition? I heard something the other day about that.
Reminds me of the "Gas Wars" when I was a kid. I remember prices dropping to 4 cents a gallon AND a window wash/tire & oil check Plus they gave us Jello, Campbell's Soup, drinking glasses, cottage cheese etc lol

[KeepItReal]

15. You are correct. Saudis drop oil prices so fraking isn't worth it economically.

High-cost frakers will have to cut costs of production or shut down.

This will be interesting to watch.

It will hurt those folks working in North American fraking, but will bring down energy prices across the board in the USA.

[amuse bouche]

18. Florida has continued to drop. I saw $2.79 posted today

Diesel is still up at $3.59. I don't get that

[leftynyc]

4. This is really going

to screw with Russia. Their economy was already in trouble, the currency keeps tanking and now this. Couldn't happen to a better asshole than putin.

[hack89]

6. Russia and Venezuela

I wouldn't be surprised if it pushes Venezuela over the brink into complete economic collapse.

[leftynyc]

8. Could very well happen

as they were headed that way when oil was closer to $90/barrell.

[CJCRANE]

12. Here's to Saudi Arabia!

[staggerleem]

14. Oh, Yeah - "Big Ups" to the Saud Family ... NOT!

Now that they have OUR military hard at work fulfilling THEIR dream of wresting Damascus from Shia control, they're giving us a break on their black gold.

I don't know about you, CJ, but I don't much like being played for a patsy on the International stage, and that's how things look to me right now.

[Sunlei]

5. saudis will have to raise gas prices at their gas stations to a dollar

They can afford it.

[bemildred]

9. Saudi Arabia is not declaring a volume war (yet): Kemp

Saudi Aramco cut the price of December crude deliveries to US refiners on Monday in order to protect its competitiveness amid an erosion of its US market share by rival exporters such as Canada and Iraq.

In August, US crude imports from Saudi Arabia slipped below 900,000 barrels per day, according to the US Energy Information Administration.

With the exception of a brief period in 2009 and early 2010, Saudi exports to the United States fell to the lowest level since 1988.

US imports from Saudi Arabia in August were just 70 percent of the average level for the past ten years which has been around 1.3 million barrels per day.

http://www.arabianbusiness.com/saudi-arabia-is-not-declaring-volume-war-yet-kemp-570563.html

[KinMd]

11. I'm certainly no economist..

but lower oil price should help the economy. If people spend less on fuel (especially if the winter is normal or miler) then they have money to spend on other things. Which, if the Republicans take the Senate tonight, they'll claim credit for.

[KeepItReal]

16. You forget NOTHING GOOD CAN HAPPEN ON PRESIDENT OBAMA'S WATCH

That is the GOP credo.

Hence all the obstruction from right-wingers.

[ballyhoo]

13. Futures at 8:06 PST.....

[IMG][/IMG]

[louis-t]

17. Speculators leaving the market have accelerated the price drop.

Saudi Arabia has only one objective-kill the fracking industry in this country. They don't like competition. I imagine they could absorb huge losses for years. If they succeed, we could have $140 bbl again in a few years. Enjoy it while you can. Buy hybrid.

[Bigredhunk]

19. They just said on the news...

…that people are buying gas guzzlers again due to the low gas prices. Sales of cars like the Volt have really dropped off. It blows my mind that people act like gas is going to stay cheap. Who buys a car based on what gas prices have been for a couple of months? Unreal.

[Jimbo S]

20. I was window shopping Prius'

out of curiosity. Sales told me Prius re-sale value drops when gas prices drop, and vice-versa.

[amuse bouche]

21. "Who buys a car based on what gas prices have been for a couple of months?"

I agree. Pathetically short-sighted and just plain moronic