Economy 52,837 Posted October 22, 2014 Share Posted October 22, 2014 http://www.usatoday.com/story/money/business/2014/10/22/rising-supplies-sink-oil-prices-to-27-month-lows/17731587/ http://www.forbes.com/sites/christopherhelman/2014/10/13/bad-news-for-u-s-drillers-as-saudis-signal-no-cuts-to-oil-output/ Saudi Arabia has signaled that they are unlikely to cut production along with OPEC to increase the ever falling oil prices as they have in past slumps For one, it will hurt oil dependant Russia and Iran who are political rivals of Saudi Arabia... Since Saudi Arabia has more savings, they are better positioned to resist low oil prices for longer while taking less damage Then theres the US Shale revolution. US oil production in shale is only profitable at $75/Barrel to $80/barrel depending on the company Prices are already around $80/barrel so if they stabilize here or fall further, the US oil industry will take a huge hit Link to post Share on other sites More sharing options...
ALX 170 Posted October 22, 2014 Share Posted October 22, 2014 I mean gas by me is getting close to $2.80 so I'm here for this Link to post Share on other sites More sharing options...
Economy 52,837 Posted October 22, 2014 Author Share Posted October 22, 2014 I mean gas by me is getting close to $2.80 so I'm here for this yeah... but fi prices fall too much that will lead to a sharper increase later if it destroys the US shale industry, production will fall dramatically in a short period of time so in a couple years time youll have a smaller oil industry, and prices up again anyway... prices falling too low will have temporary benefits to the US economy at the expense of long-term prospects Link to post Share on other sites More sharing options...
xoxo cupcakke 4,781 Posted October 22, 2014 Share Posted October 22, 2014 I mean gas by me is getting close to $2.80 so I'm here for this Last time I checked, my area had it at $2.73. TBH, I'm afeared. I don't see this as a blessing but a possible threat in sheep's clothing Link to post Share on other sites More sharing options...
Economy 52,837 Posted October 22, 2014 Author Share Posted October 22, 2014 Last time I checked, my area had it at $2.73. TBH, I'm afeared. I don't see this as a blessing but a possible threat in sheep's clothing its a mixed bag. Its not gonna hurt the US as much as oil dependant Countries like Russia, Norway or even my Country Canada to a degree The US is highly industrial and consumer based... low oil prices are good for both of those sectors its just that energy growth in the US the last few years has been a great addition to the economy and has greatly reduced the US trade deficit too but it requires higher prices because shale is more expensive... and below $80/barrel (where it is now) it simply isnt profitable Canada's oil sands are profitable at $70/barrel. It better not keep falling Link to post Share on other sites More sharing options...
Echo 327 Posted October 22, 2014 Share Posted October 22, 2014 So does this mean prices are going to drop even more!? Link to post Share on other sites More sharing options...
HANZ 4,380 Posted October 23, 2014 Share Posted October 23, 2014 not a good idea My Favs = Lady Gaga, Janet Jackson, Ricky Martin, AKB48 Link to post Share on other sites More sharing options...
Economy 52,837 Posted October 23, 2014 Author Share Posted October 23, 2014 So does this mean prices are going to drop even more!? it means they probably arent gonna cut production to increase prices like they often have in the past when prices fell Whether it falls even more or not. depends on demand. Many anaylysts agree its fallen as much as it will, but a few think it could drop further Link to post Share on other sites More sharing options...
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