Economy 52,861 Posted July 7, 2015 Share Posted July 7, 2015 http://www.cnbc.com/id/102812420 A deal between the west and Iran on its nuclear program seems likely now and as such sanctions are likely to be lifted allowing Iran to greatly increase its oil exports by as much as 1 million barrels a day As a result, investors sold off inventory for fears the Global over-supply will persist even longer than first thought possibly testing the limits of storage capacity Oil prices fell over 8% today alone at $52/Barrel for WTI and about $56/Barrel for brent! Link to post Share on other sites More sharing options...
Spyro 8,438 Posted July 7, 2015 Share Posted July 7, 2015 Does this mean gas prices will plummet again? If so, by how much? Spyro the Dragon Link to post Share on other sites More sharing options...
Economy 52,861 Posted July 7, 2015 Author Share Posted July 7, 2015 Does this mean gas prices will plummet again? If so, by how much? well it does put downward pressures on gas prices yes... however its impossible to say how much gas prices will drop. You have to remember gasoline is not oil its an oil product... As a result, it still has its own separate market Oil production has surged resulting in lower oil prices, but refining capacity (refineries refine oil to make oil products) hasnt changed because of more oil in the market... So although there is an oversupply of oil, there is no over-supply in gasoline and thats part of the reason gasoline hasn't dropped as much as oil itself has Still it will influence prices to some degree because cheaper oil means its cheaper to make gas. But most likely the drop wont be as major as on the crude oil itself Link to post Share on other sites More sharing options...
VTV 13,942 Posted July 7, 2015 Share Posted July 7, 2015 is this a good thing or a bad thing? Link to post Share on other sites More sharing options...
Economy 52,861 Posted July 7, 2015 Author Share Posted July 7, 2015 is this a good thing or a bad thing? lol that depends who you are... If you work for the energy sector, if you have lots of money invested in oil companies, or if you live in a Country highly dependant on oil production, then its bad... If you are just the average consumer, or living in a Country that has to buy oil, then its a good thing Globaly, cheaper energy tends to have more positives than negatives over-all. But as usual theres always winners and losers Link to post Share on other sites More sharing options...
Vernier 3,786 Posted July 7, 2015 Share Posted July 7, 2015 After you ran to where? Frankly my dear, I don't give a damn Link to post Share on other sites More sharing options...
Economy 52,861 Posted July 7, 2015 Author Share Posted July 7, 2015 After you ran to where? after the Iran situation Link to post Share on other sites More sharing options...
TopazBlue 2,100 Posted July 7, 2015 Share Posted July 7, 2015 After you ran to where? 🔻 𝔫𝔬 𝔭𝔯𝔢𝔧𝔲𝔡𝔦𝔠𝔢, 𝔫𝔬 𝔧𝔲𝔡𝔤𝔢𝔪𝔢𝔫𝔱, 𝔟𝔲𝔱 𝔟𝔬𝔲𝔫𝔡𝔩𝔢𝔰𝔰 𝔣𝔯𝔢𝔢𝔡𝔬𝔪 🔺 Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted July 7, 2015 Share Posted July 7, 2015 Good for manufacturing, agriculture, service industries, transportation and food . Bad for export dependent economies like Saudi Arabia, Mexico , Venezuela , Canada. For the U.S. neutral right now, I am not sure how long the oil will stay this low. History suggests that forces in the investment sector will look for ways to get a price run up after a big dip. $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Economy 52,861 Posted July 7, 2015 Author Share Posted July 7, 2015 Good for manufacturing, agriculture, service industries, transportation and food . Bad for export dependent economies like Saudi Arabia, Mexico , Venezuela , Canada. For the U.S. neutral right now, I am not sure how long the oil will stay this low. History suggests that forces in the investment sector will look for ways to get a price run up after a big dip. $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ the big thing is that lower prices should increase consumption and decrease investment in fields so in time it should cause an equilibrium in supply and demand However with OPEC looking to regain market share and member after member increasing their output (both Saudi Arabian and Iraq recently increased production), if they make up the reductions else where, it could cause oil rebound to take longer PS: the oil price dip might be good for me, because the Bank of Canada is thinking of cutting rates again which means my parents will renew for a lower mortgage rate in a few months and they wont raise my rent Also lower rates means even worse housing bubble in Canada so when im ready to buy a house and Canadian housing crashes real bad, ill buy my first house cheap So for selfish reasons i need oil to stay low Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted July 7, 2015 Share Posted July 7, 2015 the big thing is that lower prices should increase consumption and decrease investment in fields so in time it should cause an equilibrium in supply and demand However with OPEC looking to regain market share and member after member increasing their output (both Saudi Arabian and Iraq recently increased production), if they make up the reductions else where, it could cause oil rebound to take longer PS: the oil price dip might be good for me, because the Bank of Canada is thinking of cutting rates again which means my parents will renew for a lower mortgage rate in a few months and they wont raise my rent Also lower rates means even worse housing bubble in Canada so when im ready to buy a house and Canadian housing crashes real bad, ill buy my first house cheap So for selfish reasons i need oil to stay low When the Saudi's feel secure in their market share, they will lower production. Higher prices help them, its mostly political right now with the Iran situation and U.S. shale threatening their stake. like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Versace 8,080 Posted July 7, 2015 Share Posted July 7, 2015 After you ran to where? *Air* MAJOR LOLS Link to post Share on other sites More sharing options...
Economy 52,861 Posted July 7, 2015 Author Share Posted July 7, 2015 When the Saudi's feel secure in their market share, they will lower production. Higher prices help them, its mostly political right now with the Iran situation and U.S. shale threatening their stake.I hope not... In the part of Canada i live in, we get very few economic benefits from high oil prices anyway. The renevue the Federal Government gets is about the only benefit from oil that is felt outside of Western Canada But im not sure Saudis will drop price when they feel secure. They know things have changed and theres a lot more competition from other unconventional reserves now and if they dont produce and prices rise, some other Country will just take their market share Thats why most of the time OPEC cuts production after price drops but this time Saudi Arabia convinced OPEC it wasnt a prudent thing to do this time! Link to post Share on other sites More sharing options...
Luc 4,776 Posted July 7, 2015 Share Posted July 7, 2015 This will compensate for the Greek bankrupcy great! Link to post Share on other sites More sharing options...
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