Oil Prices Collapses Today NOV After Opec Decides To Keep Pumping

[Economy 52,861]

http://m.bbc.com/news/business-30223721

Oil prices today have fallen very sharply with brent falling from $78/barrel yesterday all the way down to $72/barrel today

The main North American benchmark (WTI) has fallen below $69/barrel today something no one thought was possible 1 month ago

The step drop in a single day came after OPEC decided not to cut production to stabalize prices after their meeting even as the oversupply remains an issue!

NOTE: Oil is still trading at this hour. These are the current prices as of 12:23 pm NY time zone

[BohemianTwist 1]

yas! im here for this. 

[Economy 52,861]

yas! im here for this.

if prices fall too much many oil producers may either go bankrupt or cut investment

That could lead to a cyclical effect where 1-2 years from now prices may rise very sharply

The bigger the boom the bigger the bust. The opposite is also often true :coffee:

[BohemianTwist 1]

if prices fall too much many oil producers may either go bankrupt or cut investment

That could lead to a cyclical effect where 1-2 years from now prices may rise very sharply

The bigger the boom the bigger the bust. The opposite is also often true

oh...that suxxx. i love how ur username, it's perfect for hosting a thread like this  :saira:

[Economy 52,861]

oh...that suxxx. i love how ur username, it's perfect for hosting a thread like this :saira:

lol thanks :)

And prices would probably have to stay below $70/barrel for quite a while for many oil producers (especially small companies) to go bankrupt

So... If were lucky that sharp rise wont happen. Im just saying, we dont necessairily want prices to just keep dropping forever cuz it could backfire later

An extreme of anything isnt good

Considering the cost of producing oil nowadays is higher than it used to be (cause much new oil production is from shale or oil sands not liquid oil), a more proper healthy market price should be at least $80/bareel

The current prices could certainly be sustained for a while tho without major concequences

[BohemianTwist 1]

lol thanks :)

And prices would probably have to stay below $70/barrel for quite a while for many oil producers (especially small companies) to go bankrupt

So... If were lucky that sharp rise wont happen. Im just saying, we dont necessairily want prices to just keep dropping forever cuz it could backfire later

An extreme of anything isnt good

Considering the cost of producing oil nowadays is higher than it used to be (cause much new oil production is from shale or oil sands not liquid oil), a more proper healthy market price should be at least $80/bareel

The current prices could certainly be sustained for a while tho without major concequences

oh i see:) Thanks for the nice explanation of that xoxoxo

[Blackwillow 2,200]

yaaaaaaaaaaaas keep falling please im loving it!! :excited:

[Luc 4,776]

Good for my country. This is basically the biggest sanction countries like Russia, Iran, Libya and Saudi Arabia could get.

[teo 609]

Good for my country. This is basically the biggest sanction countries like Russia, Iran, Libya and Saudi Arabia could get.

Saudi Arabia is literally the biggest exporter in OPEC, the organization behind this decision and Libya and Iran are also members. But Russia will be hurt badly by this. 

[Economy 52,861]

Good for my country. This is basically the biggest sanction countries like Russia, Iran, Libya and Saudi Arabia could get.

and my Country Canada. Oil is a huge industry here. Were the worlds 6th largest producer :(

Fortunately in the part of Canada i live in (Ontario) is more manufacturing based as not as resource based as Western Canada

And Saudi Arabia has lots of reserves in their wealth fund and can withstand low prices for a long time. Also they seem fine with it. Probably cuz their oil is cheaper to produce than most and thus lower prices will affect their competition than it will them

So Saudi is hardly being sanctioned. Venezuela and Russia are really struggling tho

[Luc 4,776]

Saudi Arabia is literally the biggest exporter in OPEC, the organization behind this decision and Libya and Iran are also members. But Russia will be hurt badly by this.

This hurts OPEC members just as much

I'm SO going to invest in oil. Economy, advice me if I should wait longer...

[Economy 52,861]

Saudi Arabia is literally the biggest exporter in OPEC, the organization behind this decision and Libya and Iran are also members. But Russia will be hurt badly by this.

Opec produces a smaller percentage of the worlds oil than they used to because of oil booms else where

This gives them less power. Now they would have to cut production by a greater amount then they have in the past to get the same effect

Also with booming supplies elsewhere, they could loose market share and customers will just get new suppliers

So OPEC is in a position where they arent sure whether to cut production or not cause they will suffer either way. So for now they havent reached an agreement

[Economy 52,861]

This hurts OPEC members just as much

I'm SO going to invest in oil. Economy, advice me if I should wait longer...

i invested in the oil energy sector recently also. I think its about as low as it will go

That being said, this may not be a V like correction where it hits a bottom then rebounds

This is likely to be a U downfall where once it hits a bottom it will stagnate for a while before rebounding because the extra supply isnt going anywhere for a while

So u may need patience. U can invest in oil now but may need to wait a while for it to rise again

[Luc 4,776]

i invested in the oil energy sector recently also. I think its about as low as it will go

That being said, this may not be a V like correction where it hits a bottom then rebounds

This is likely to be a U downfall where once it hits a bottom it will stagnate for a while before rebounding because the extra supply isnt going anywhere for a while

So u may need patience. U can invest in oil now but may need to wait a while for it to rise again

I guess I'll just get a job and try to get as much money as I possibly could. How amazing would it be if I could make my current €7000 -> €10000-12000 in one year (perhaps two or three).

Good with oil is that I know that it wont go lower than $60, won't go bankrupt and won't go higher than $120.

Another question: Is it better to invest in the US oil or in Brent?

[Economy 52,861]

I guess I'll just get a job and try to get as much money as I possibly could. How amazing would it be if I could make my current €7000 -> €10000-12000 in one year (perhaps two or three).

Good with oil is that I know that it wont go lower than $60, won't go bankrupt and won't go higher than $120.

Another question: Is it better to invest in the US oil or in Brent?

US oil companies have more growth potential because of new technologies for shale fracking. On the other hand production costs are higher so they are riskier to invest in while prices are low

Id look into a US shale company that is more established and produces more. Those companies usually have lower costs of production and bigger balance sheets to wait out the price drop

U may also wanna look through some big Canadian Oil Sands companies. Some really large ones like suncor or nevus produce a lot and are well financed and wouldnt go bankrupt unless prices dropped a lot more

Personally i went with an energy fund with my bank. I didnt wanna have to do research for every single company

Just dont put all ur eggs into one basquet. Dont just invest in oil and energy. Make sure to include other stuff especially since theres no telling how long this bottom will last

Not everyone agrees, but some experts see the oil price slump lasting up to the end of 2015 or even early 2016 until the low prices start to destroy small companies with higher costs of production and supply becomes more balanced with demand