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Oil near six-year low.......................Why ?

Oil near six-year low; Brent trades at par to U.S. crude

With crude oil prices continuing to fall, consumers are set to benefit as the downward pressure on the price of petrol at the pumps continues.

What is happening ?

Bruv;1471561 wrote: Oil near six-year low.......................Why ?

Oil near six-year low; Brent trades at par to U.S. crude

With crude oil prices continuing to fall, consumers are set to benefit as the downward pressure on the price of petrol at the pumps continues.

What is happening ?
They're running scared - they've been reading Katsung's posts.

FourPart;1471562 wrote: They're running scared - they've been reading Katsung's posts.


I haven't what is his theory ? Keep it short.

There is no sudden glut, not drop off of demand, strings are being pulled.

Basically, the big three oil producers are now Russia, US and Saudi Arabia.

The Russians have been dropping prices to compete with the Saudis, and the so the two have gotten into a price battle.

The rest of OPEC has to follow the Saudis.

The price drop has US drillers whining, now. The high price of oil was what made Fracking affordable.

We will probably start capping wells and buying more from the Saudis, again.

LarsMac;1471577 wrote: Basically, the big three oil producers are now Russia, US and Saudi Arabia.

The Russians have been dropping prices to compete with the Saudis, and the so the two have gotten into a price battle.

The rest of OPEC has to follow the Saudis.

The price drop has US drillers whining, now. The high price of oil was what made Fracking affordable.

We will probably start capping wells and buying more from the Saudis, again.


You must be able to produce it cheaper than buying it from Saudi ?

I thought America was self sufficient in *cough* gas (Petrol)

Nothing to do with dropping the price to cause the Russians problems ?

Bruv;1471580 wrote: You must be able to produce it cheaper than buying it from Saudi ?

I thought America was self sufficient in *cough* gas (Petrol)

Nothing to do with dropping the price to cause the Russians problems ?


We only produce

Countries - U.S. Energy Information Administration (EIA)

About half of what we consume

Countries - U.S. Energy Information Administration (EIA)

LarsMac;1471582 wrote: We only produce

Countries - U.S. Energy Information Administration (EIA)

About half of what we consume

Countries - U.S. Energy Information Administration (EIA)


Oh dear................better start cutting back then.

Supply and demand.

The tide has turned.



Back to the Future? Oil Replays 1980s Bust

Rise of Shale Extraction Speeds Output and Changes Equation for Producers

After the mid-1980s bust, it took nearly two decades for oil prices to rebound to pre-bust levels and remain there. Energy executives are now haunted by the question: Will it take as long this time?

The answer may lie in one enormous difference between today and 30 years ago: the speed of shale.

Before U.S. energy companies figured out how to pull oil from shale formations, petroleum projects often took years to execute. Two decades passed between a fisherman spotting a colorful slick floating off the coast of Mexico and oil flowing from the giant Cantarell project off the Yucatan Peninsula. It took nine years and billions of dollars to get crude moving from the North Slope of Alaska to markets.


Today, the discovery and development of oil from shale rocks means that oil output is faster paced and near at hand—in Texas and North Dakota, Colorado, Oklahoma, Wyoming, even Ohio. Drilling and hydraulically fracturing a well takes weeks, not years. An expensive well costs $10 million, compared with the billions needed to drill offshore wells and build associated infrastructure. Moreover, expenditure of both time and money are falling fast.


We all should celebrate.

tude dog;1471720 wrote: We all should celebrate.


Is shooting yourself in the foot a reason to cheer ?

Bruv;1471733 wrote: Is shooting yourself in the foot a reason to cheer ?


You go take a gun shoot your foot, tell us about it.

Just wondering, does it matter if it is done barefoot or with a shoe on?

Will we be hearing of "record profits" again this year?

along-for-the-ride;1471824 wrote: Will we be hearing of "record profits" again this year?


Profits are a good thing.

Even better,

We get cheap er gas.

tude dog;1471959 wrote: Profits are a good thing.

Even better,

We get cheap er gas.


Or will the fuel companies just make bigger profits by buying at lower prices & continuing to sell at the same prices, while promoting the fact that their prices haven't risen in 'x' amount of time?

What's the going price of petrol in the UK, these days?

Wrexham's petrol prices are some of the cheapest in the UK - Daily Post

I just paid about £1.11 / Litre to top Da Beasty up at Tesco, with a 2p / Litre discount from Clubcard Points - a grand total cost of about £3.50 (he wasn't very hungry - I just felt he'd earned it cos he'd been a good little Beasty).