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(CNBC)   Good news: Oil prices are dropping Bad news: Oil prices are dropping   (cnbc.com) divider line 58
    More: Obvious, oils, bad, Economy of Europe, margin requirement, West Texas Intermediate, nonfarm payrolls, free fall, Commodity Futures Trading Commission  
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2944 clicks; posted to Business » on 05 May 2012 at 4:54 AM (3 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2012-05-04 11:21:15 PM  
So, this is all Obama's fault?
 
2012-05-04 11:40:08 PM  

NewportBarGuy: So, this is all Obama's fault?


Only if he releases oil from the strategic oil reserve. Which might actually be a good idea since it would likely push prices down even further.
 
2012-05-05 01:10:04 AM  
When commodities drop, they do so without touching the sides.
 
2012-05-05 02:41:41 AM  
Price per BARREL can drop all it likes.

Until Obama signs that pipeline into existence the price at the pump will go only up. This is your punishment for putting a democrat who doesn't ok projects for your oil overlords into the white house.


/approve the pipeline and the price still won't go down, just stop going up as fast
 
2012-05-05 02:59:50 AM  
What I find funny is that about 10 years ago we had a big fight over oil exploration in the Alaskan reserve. We were told by libs that it would take 10 years for the oil to come to market. Now, 10 years later, we still haven't drilled and we need that oil more than ever.

If your gas costs too damn much, thank a liberal.

/note: For those that think "drill here, drill now" isn't an answer, look at what happened with natural gas prices. They peaked after Katrina. Then, there was massive exploration and we found 100 years of reserves. Now, natural gas prices are as low as ever. Why? Because we drilled here and drill there.

If we did this looking for oil, who knows what we would find. Even in Alaska.
 
2012-05-05 03:30:32 AM  

unyon: When commodities drop, they do so without touching the sides.


yup
and splash right back into your brown eye

On a slightly more serious note, commodities can go up, can go down and can stay steady.
If the reporters actually KNEW why oil went up or down, they would be making billions trading oil.
Did the oil go down because the sky is falling or because the traders were getting out or because the price can not go up forever?

/cue the peak oil people to explain how oil is going to go up forever.
 
2012-05-05 03:31:33 AM  

unlikely: Price per BARREL can drop all it likes.

Until Obama signs that pipeline into existence the price at the pump will go only up. This is your punishment for putting a democrat who doesn't ok projects for your oil overlords into the white house.


/approve the pipeline and the price still won't go down, just stop going up as fast


Do you know what would REALLY help lower prices? if the refineries stop exporting gasoline.
/damn fungible commodities
 
2012-05-05 05:01:52 AM  

namatad: unlikely: Price per BARREL can drop all it likes.

Until Obama signs that pipeline into existence the price at the pump will go only up. This is your punishment for putting a democrat who doesn't ok projects for your oil overlords into the white house.


/approve the pipeline and the price still won't go down, just stop going up as fast

Do you know what would REALLY help lower prices? if the refineries stop exporting gasoline.
/damn fungible commodities


Why do you hate the free market?
 
2012-05-05 05:24:59 AM  

EnviroDude: What I find funny is that about 10 years ago we had a big fight over oil exploration in the Alaskan reserve. We were told by libs that it would take 10 years for the oil to come to market. Now, 10 years later, we still haven't drilled and we need that oil more than ever.

If your gas costs too damn much, thank a liberal.

/note: For those that think "drill here, drill now" isn't an answer, look at what happened with natural gas prices. They peaked after Katrina. Then, there was massive exploration and we found 100 years of reserves. Now, natural gas prices are as low as ever. Why? Because we drilled here and drill there.

If we did this looking for oil, who knows what we would find. Even in Alaska.


There isn't 100 years worth, not even close. That's just a bald faced lie.
 
2012-05-05 07:21:54 AM  
I don't know why anybody's surprised. The market has already found out once that $3.75 to $4 gasoline (in the United States) seems to be the threshold for when it starts to adversely affect the economy. Why they had to push the limit again knowing this is beyond me.
 
2012-05-05 07:30:22 AM  

EnviroDude: What I find funny is that about 10 years ago we had a big fight over oil exploration in the Alaskan reserve. We were told by libs that it would take 10 years for the oil to come to market. Now, 10 years later, we still haven't drilled and we need that oil more than ever.


Democrats want us to heat our homes and drive our cars on unicorn farts.

OK seriously, they believe that higher energy prices will drive us to a sustainable-green economy faster. So They actually want higher energy prices. Obama admitted as much. The problem with their plan is what will happen to our economy when we have the next oil disruption. And it's not a matter of if, it's a matter of when.
 
2012-05-05 07:42:16 AM  

BigBooper: OK seriously, they believe that higher energy prices will drive us to a sustainable-green economy faster. So They actually want higher energy prices. Obama admitted as much. The problem with their plan is what will happen to our economy when we have the next oil disruption. And it's not a matter of if, it's a matter of when.


Assuming that's true, higher prices will cushion the blow. If gas was a dollar and went up to $2, that's a bigger deal than if gas was four dollars and goes up to five, counter intuitively.
 
2012-05-05 07:51:26 AM  
Memorial Holiday weekend is just a few weeks away.

Gas prices will shoot back up just in time for the long weekend.
 
2012-05-05 07:52:40 AM  

jkl65s4: I don't know why anybody's surprised. The market has already found out once that $3.75 to $4 gasoline (in the United States) seems to be the threshold for when it starts to adversely affect the economy. Why they had to push the limit again knowing this is beyond me.


They just wanted to test the waters. See if we would bite. We do, but we bite them not the bait.
 
2012-05-05 07:54:34 AM  

lewismarktwo: There isn't 100 years worth, not even close. That's just a bald faced lie.


Yeah, I don't know where the hell he heard that. All I remember oil experts saying is that drilling in Alaska would drop the price of oil per barrel by maybe $1.

I'm guessing he actually believe the BS the oil industry PAC were spewing.
 
2012-05-05 08:01:51 AM  

namatad: cue the peak oil people to explain how oil is going to go up forever.


Not going high forever. Staying high forever. As an Albertan, as long as it stays above $75, I'm happy. Oilsands extraction is profitable above $50 or so.
 
2012-05-05 08:14:38 AM  
Truth to me seems to be that as soon as gas starts getting close to $4/gallon, people start raising hell and all of a sudden there is a "glut" or whatever world situation that was a major concern last week is now eased off or some other bullshiat reason the oil companies feed the gullible MSM and prices drop. They've tried at least 3 times since Katrina to get prices above $4/gallon. Every time, the purchasing market raises hell and slows down their buying and the prices drop. The excuses for raising and lowering the price of oil are smoke screens. The first time prices got up to $4 the retreated to under $2.75. The 2nd time they backed off to just over 3.25. My guess is they are trying to find a price point Americans will tolerate. Never fear, as soon as the summer vacation/driving season arrives there will be another story justifying the increase in prices until Sept when demand slacks off. It's the same story year after year.
 
2012-05-05 08:30:19 AM  
The only possible thing that can get gas back under $1 a gallon is approving a pipeline, that will create 40 long-term jobs to take oil to refineries who will ship it overseas, a few months faster than it would have been approved in the first place.
 
2012-05-05 08:33:06 AM  

ghare: The only possible thing that can get gas back under $1 a gallon is approving a pipeline, that will create 40,000,000 long-term jobs to take oil to refineries who will ship it overseas, a few months faster than it would have been approved in the first place.


FTFY

You forgot a few zeros.

At least that's what the pro-pipeline proganda told me and they would NEVER lie and inflate the expected job numbers for us would they?
 
2012-05-05 08:49:46 AM  

NewportBarGuy: So, this is all Obama's fault?


It's my fault.

/unqualified speculator
 
2012-05-05 08:53:00 AM  

BigBooper: EnviroDude: What I find funny is that about 10 years ago we had a big fight over oil exploration in the Alaskan reserve. We were told by libs that it would take 10 years for the oil to come to market. Now, 10 years later, we still haven't drilled and we need that oil more than ever.

Democrats want us to heat our homes and drive our cars on unicorn farts.

OK seriously, they believe that higher energy prices will drive us to a sustainable-green economy faster. So They actually want higher energy prices. Obama admitted as much. The problem with their plan is what will happen to our economy when we have the next oil disruption. And it's not a matter of if, it's a matter of when.


You know what I'm gonna say when that happens? "Thank god we didn't foolishly squander our oil reserves when prices were high and instead decided to conserve them for when they were actually needed."
 
2012-05-05 08:54:07 AM  

Mrtraveler01: ghare: The only possible thing that can get gas back under $1 a gallon is approving a pipeline, that will create 40,000,000 long-term jobs to take oil to refineries who will ship it overseas, a few months faster than it would have been approved in the first place.

FTFY

You forgot a few zeros.

At least that's what the pro-pipeline proganda told me and they would NEVER lie and inflate the expected job numbers for us would they?


I love it when morons drone on about the pipeline. My engineering students are in agreement: most of the work will go to a few select companies in Texas. The pipeline will pretty much jack prices up 20 cents overnight. A Republican red herring? NEVER
 
2012-05-05 09:03:22 AM  

trotsky: My engineering students are in agreement


Well that settles it then.
 
2012-05-05 09:15:22 AM  

trotsky: most of the work will go to a few select companies in Texas


Man they're being optimistic. I'd figure they would truck them in from Alberta.

Kind of like when the Marcellus Shale first started up and the only workers that worked on drilling there were from the Gulf States.
 
2012-05-05 09:58:46 AM  
So, everyone in the world now realizes that President Obama will win a second term and we will have a sane government for four more years?
 
2012-05-05 10:18:49 AM  

threadjackistan: OK seriously, they believe that higher energy prices will drive us to a sustainable-green economy faster. So They actually want higher energy prices. Obama admitted as much. The problem with their plan is what will happen to our economy when we have the next oil disruption. And it's not a matter of if, it's a matter of when.

You know what I'm gonna say when that happens? "Thank god we didn't foolishly squander our oil reserves when prices were high and instead decided to conserve them for when they were actually needed."


As has been pointed out by short sighted politicians many times, these resources take years to develop. An event like a hurricane or earthquake, or even a Middle East war is a short term disruption in comparison. However, those short term disruptions can have devastating results to the global economy. The strategic oil reserves will help, but they're only equal to a small amount of the oil we use in a year.

What we need is excess capacity. To have the infrastructure in place, and the ability to increase our production in a short amount of time. At the same time we absolutely need to be working on long term alternatives. Ethanol is idiotic beyond belief unless we switch to a non-food crop. Solar has great potential, but isn't ready for prime time; just like all the "clean energy" technologies. The tech that looks the most interesting is liquid metal nuclear reactor tech. Regardless, we should be aggressively investing in competing technologies to replace fossil fuels.

But whatever we use in the future, the short term is clear, drill here, drill now. Nothing is going to be ready to replace oil and gas for twenty or thirty years.
 
2012-05-05 10:30:01 AM  

threadjackistan: You know what I'm gonna say when that happens? "Thank god we didn't foolishly squander our oil reserves when prices were high and instead decided to conserve them for when they were actually needed."


This. It still amazes me that so many people biatch about gas prices. Spending $10/gallon for bottled water that isn't any better than tap water is apparently a no-brainer to most, but $4/gallon for the magic goop that lets you travel faster independently than people could've dreamt a couple hundred years ago and is required to produce almost everything you buy is the end of the universe.

Even at $4, gas is a steal.

Unless you work a job that requires driving something big or driving a lot of miles, you shouldn't be hurt by gas prices. If you're hurt by them, it's because you're wasteful. Not to mention you're driving up prices for people who do work those kinds of jobs.
 
2012-05-05 10:41:37 AM  

unlikely: Price per BARREL can drop all it likes.

Until Obama signs that pipeline into existence the price at the pump will go only up. This is your punishment for putting a democrat who doesn't ok projects for your oil overlords into the white house.


/approve the pipeline and the price still won't go down, just stop going up as fast


So how is the oil getting to refineries now?

I'm sure it has nothing to do with pipelines already in existence.

img94.imageshack.us

The only thing the new pipeline will do is make John Boehner money, seeing as how he's got about $350,000 invested in companies that stand to make huge profits if the approval goes through.
 
2012-05-05 11:25:49 AM  

BlameBush: My guess is they are trying to find a price point Americans will tolerate.


You win. No, really, I'm not being sarcastic. Dog knows they have to keep Americans on the tit, it's what makes the world go 'round.

So who's the stupid ones here?
 
2012-05-05 11:52:07 AM  
I got a greenlight for http://www.fark.com/comments/1091223/What-$50-per-barrel-oil-means-to - you what seems a lifetime ago.
 
2012-05-05 12:29:12 PM  

jkl65s4: I don't know why anybody's surprised. The market has already found out once that $3.75 to $4 gasoline (in the United States) seems to be the threshold for when it starts to adversely affect the economy. Why they had to push the limit again knowing this is beyond me.


oil trader profit/greed. was there any other question?? LOL
 
2012-05-05 12:57:52 PM  

Dog Welder: unlikely: Price per BARREL can drop all it likes.

Until Obama signs that pipeline into existence the price at the pump will go only up. This is your punishment for putting a democrat who doesn't ok projects for your oil overlords into the white house.


/approve the pipeline and the price still won't go down, just stop going up as fast

So how is the oil getting to refineries now?

I'm sure it has nothing to do with pipelines already in existence.

[img94.imageshack.us image 550x328]

The only thing the new pipeline will do is make John Boehner money, seeing as how he's got about $350,000 invested in companies that stand to make huge profits if the approval goes through.


be fair
the new pipeline will shorten the distance oil will travel from canada to the gulf. shorter path equals quicker to refinery equals quicker profit selling that gasoline overseas.
 
2012-05-05 12:59:10 PM  
Any one seen these cheesy ads yet?:

pagead2.googlesyndication.com
 
2012-05-05 01:08:33 PM  

namatad: The only thing the new pipeline will do is make John Boehner money, seeing as how he's got about $350,000 invested in companies that stand to make huge profits if the approval goes through.


Pfffttt. Peanuts.
 
2012-05-05 01:56:07 PM  

RickyWilliams'sBong: Unless you work a job that requires driving something big or driving a lot of miles, you shouldn't be hurt by gas prices. If you're hurt by them, it's because you're wasteful. Not to mention you're driving up prices for people who do work those kinds of jobs.


Does a 38 mile (one way) commute count as 'a lot' of miles? I drive a reasonably fuel efficient car in a manner that preserves the efficiency over that distance, and a tank of gas lasts me about a week, including running around to get groceries and odd errands. Working 12 hour shifts helps, too, I avoid most of the rush-hour traffic so I'm not stuck on the highway idling. My last job I was taking DART to work, all month long was the same cost as a week and a half of fuel. Currently it's not an option.

I am also looking for a new apartment closer to work, hopefully ground floor in a newer complex so I can minimize my energy costs a little further.

I'm not doing this for the environment or as any form of conservation effort. It's all about dollars and cents, I want to have more left over to cover emergency expenses or fun stuff. I could technically manage with my current situation, but one mess-up like a blown tire or some illness that makes me miss a day or 13 and I'm farking dead in the water.

Lower gas prices are incentive to get out there and find a means to get myself into a better situation to have disposable income for the unknown. I'm taking advantage while I have the chance.
 
2012-05-05 02:11:02 PM  

Mrtraveler01: Any one seen these cheesy ads yet?:

[pagead2.googlesyndication.com image 300x250]


Nope.
 
2012-05-05 02:56:08 PM  
Here's how you know the economy has gotten so much better:

The disappointing April jobs report Friday, showing just 115,000 nonfarm payrolls were added

We're disappointed by gaining 115,000 jobs.
 
2012-05-05 03:04:34 PM  

Dog Welder: unlikely: Price per BARREL can drop all it likes.

Until Obama signs that pipeline into existence the price at the pump will go only up. This is your punishment for putting a democrat who doesn't ok projects for your oil overlords into the white house.


/approve the pipeline and the price still won't go down, just stop going up as fast

So how is the oil getting to refineries now?

I'm sure it has nothing to do with pipelines already in existence.

[img94.imageshack.us image 550x328]

The only thing the new pipeline will do is make John Boehner money, seeing as how he's got about $350,000 invested in companies that stand to make huge profits if the approval goes through.


The new oil pipelines being planned would connect the markets in the interior of the U.S. with the markets of the Gulf Coast.

Currently, there's a glut of oil supply in the interior of the U.S. because of rising oil supply and inadequate pipeline capacity to get that rising supply out of the region. The rising supply is largely from growing Bakken production in North Dakota, from the Rockies Basins of Colorado and Wyoming, and from the Permian Basin of Texas and New Mexico. Plus, there's increased imports from western Canada. So the price of oil in the interior of the U.S. is "low" (about $80/barrel or less).

Meanwhile, the Gulf Coast markets get their oil from oil fields along the Gulf Coast and the Gulf of Mexico, and, importantly, international imports, which are more expensive because of all the geopolitical uncertainty in the world as well as growing demand in the third world and second world. So Gulf Coast oil prices are high (over $100/barrel).

So, what these new pipes will do is connect a low-price region with a higher priced region, allowing cheaper oil to get into a market that has typically relied on higher priced oil. This will increase oil prices in the interior of the U.S. and decrease oil prices on the Gulf Coast. But, overall, there should be a net reduction in oil prices in the U.S. because there's less reliance on expensive international oil.

In theory, this should reduce gasoline prices across the U.S.

/in theory
 
2012-05-05 03:08:14 PM  

Mrtraveler01: ghare: The only possible thing that can get gas back under $1 a gallon is approving a pipeline, that will create 40,000,000 long-term jobs to take oil to refineries who will ship it overseas, a few months faster than it would have been approved in the first place.

FTFY

You forgot a few zeros.

At least that's what the pro-pipeline proganda told me and they would NEVER lie and inflate the expected job numbers for us would they?


I heard it was 40,000,000 jobs per mile, and gas prices will instantly drop to $.50/gallon. The downside is that the instant it is complete it will decimate all life within 1,000 miles, making most of the country completely uninhabitable for a billion years. I'm torn.
 
2012-05-05 03:12:18 PM  

ghare: The only possible thing that can get gas back under $1 a gallon is approving a pipeline, that will create 40 long-term jobs to take oil to refineries who will ship it overseas, a few months faster than it would have been approved in the first place.


Makes you wonder why the Republican governor of Nebraska who would have the pipeline run through his state keeps asking Obama to not approve it, doesn't it?
 
2012-05-05 03:15:15 PM  

lennavan: Here's how you know the economy has gotten so much better:

The disappointing April jobs report Friday, showing just 115,000 nonfarm payrolls were added

We're disappointed by gaining 115,000 jobs.


Ummmmm. We need more than that to just keep up with population growth. If we want to get back to 5% unemployment, we need to average just over 280,000 jobs a month for five years. Finally, 4/5 of the decline in unemployment rate was people giving up looking for work.

Our economy has been near stall speed for too long, and it's not going to take much to push us back into recession.
 
2012-05-05 03:18:16 PM  

BigBooper: lennavan: Here's how you know the economy has gotten so much better:

The disappointing April jobs report Friday, showing just 115,000 nonfarm payrolls were added

We're disappointed by gaining 115,000 jobs.

Ummmmm. We need more than that to just keep up with population growth. If we want to get back to 5% unemployment, we need to average just over 280,000 jobs a month for five years. Finally, 4/5 of the decline in unemployment rate was people giving up looking for work.

Our economy has been near stall speed for too long, and it's not going to take much to push us back into recession.


Your post is another great example of how much the economy has improved. You are arguing with a goal of a 5% unemployment rate and 280,000 jobs a month. Man things have turned around a LOT in just a few years.
 
2012-05-05 03:29:35 PM  

BigBooper: Our economy has been near stall speed for too long, and it's not going to take much to push us back into recession.


True. It really depends on what happens in Europe.
 
2012-05-05 03:53:56 PM  

wutchamacallem: namatad: The only thing the new pipeline will do is make John Boehner money, seeing as how he's got about $350,000 invested in companies that stand to make huge profits if the approval goes through.

Pfffttt. Peanuts.


Well bully for you, Mr. Millionaire. But some(the vast majority) of us live in a world where that is a metric farkton of money. If Three Hundred and Fifty Thousand Dollars is such a pittance to you, why don't you have your total fark membership paid up the next 6000 years?

/Okay okay, 5,833 years, four months.
 
2012-05-05 04:12:58 PM  

unlikely: Price per BARREL can drop all it likes.

Until Obama signs that pipeline into existence the price at the pump will go only up.


Explain. Be specific.
 
2012-05-05 05:19:10 PM  
You all may find these charts and graphs informative:

wonkroom.thinkprogress.org



www.americanprogress.org
 
2012-05-05 05:33:01 PM  

BigBooper: lennavan: Here's how you know the economy has gotten so much better:

The disappointing April jobs report Friday, showing just 115,000 nonfarm payrolls were added

We're disappointed by gaining 115,000 jobs.

Ummmmm. We need more than that to just keep up with population growth. If we want to get back to 5% unemployment, we need to average just over 280,000 jobs a month for five years. Finally, 4/5 of the decline in unemployment rate was people giving up looking for work.

Our economy has been near stall speed for too long, and it's not going to take much to push us back into recession.


Something like 10k people a week turn 65 as the baby boomers age into traditional retirement. We are in greater danger of not enough workers in four years than having too few jobs. The only thing that would prevent a serious employee shortage would be another economic meltdown that wipes out retirement savings again.

This has been known for about twenty years which is why employment has not bounced back. Big businesses have undertaken structural changes to make sure the smaller worker market does not bite them in the butt over the next decade.
 
2012-05-05 06:15:05 PM  

namatad: /cue the peak oil people to explain how oil is going to go up forever.


The Beverly Hillbillies black gold days are over. The deep sea drilling, the tar sands, the fracking, much much much harder and more expensive to get out and that trend will continue over the long term. Easy sources are going away and we're becoming more and more dependent on hard sources. That will mean upwards pressure on price in the long run, but of course demand plays a big role too.
 
2012-05-05 08:16:56 PM  
Something I learned working on pipelines in the early 80s. What ever the cost to install can be retrieved when they come online. Lots of OT and waste will be added to the job.
 
2012-05-05 08:22:41 PM  

EnviroDude: What I find funny is that about 10 years ago we had a big fight over oil exploration in the Alaskan reserve. We were told by libs that it would take 10 years for the oil to come to market. Now, 10 years later, we still haven't drilled and we need that oil more than ever.

If your gas costs too damn much, thank a liberal.

/note: For those that think "drill here, drill now" isn't an answer, look at what happened with natural gas prices. They peaked after Katrina. Then, there was massive exploration and we found 100 years of reserves. Now, natural gas prices are as low as ever. Why? Because we drilled here and drill there.

If we did this looking for oil, who knows what we would find. Even in Alaska.


You mean that oil field that Chevron said would only produce enough for at most a few months worth? That oil field?
 
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