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(CNBC)   Oil prices will continue to fall as OPEC realizes they need to sell oil to make money   (cnbc.com) divider line
    More: Spiffy, Petroleum, Russia, influential alliance of oil producers, United States, OPEC, European Union, fresh price-supporting production cuts, Saudi Arabia  
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810 clicks; posted to Business » on 04 Dec 2022 at 2:24 PM (8 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



15 Comments     (+0 »)
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2022-12-04 2:42:05 PM  
How do you figure it'll keep dropping, subby? ++OPEC++ says it's going to maintain its production cuts, just not cut further. Meanwhile, Russia is seething and foaming and saying that before it sells oil for $60 a barrel, it'll shut down production. That may or may not be an empty threat, but rhetoric like that usually spooks the market and causes prices to rise.
 
2022-12-04 2:57:35 PM  
Margins are more important than volume.

Double your margins and you can sell half as much and still make the same amount of money.

Plus, you'll have that much more oil still in the ground to make future money off of.
 
2022-12-04 3:04:23 PM  
I'm sure there will be a refinery *accident* that keeps them up through the holidays.
 
2022-12-04 3:27:22 PM  
We should investigate Hunter Biden just to be sure.
 
2022-12-04 3:41:18 PM  
Saudis achieved their goal and kept the oil prices high through the US elections which help flip the House.
 
2022-12-04 3:41:51 PM  

jjorsett: How do you figure it'll keep dropping, subby? ++OPEC++ says it's going to maintain its production cuts, just not cut further. Meanwhile, Russia is seething and foaming and saying that before it sells oil for $60 a barrel, it'll shut down production. That may or may not be an empty threat, but rhetoric like that usually spooks the market and causes prices to rise.


It IS an empty threat.  Oilfields aren't something you just turn on and off unless you want to risk losing the field.

https://www.resilience.org/stories/2020-05-28/shutting-down-oil-wells-a-risky-and-expensive-option/
 
2022-12-04 4:01:01 PM  
Only have to fall another 50% to get back to the level where they were before Biden took office.

I can't imagine too many producers that made it through 2020 are suffering too much at double the price today. The weak companies all went bankrupt already and their reserves got snagged by those with deeper pockets.
 
2022-12-04 5:23:14 PM  

SomeAmerican: Margins are more important than volume.

Double your margins and you can sell half as much and still make the same amount of money.

Plus, you'll have that much more oil still in the ground to make future money off of.


That works for limited amounts of time.

Then you get demand destruction.
 
2022-12-04 8:20:19 PM  
The Kremlin has previously warned that any attempt to impose a price cap on Russian oil will cause more harm than good.


Russia seems to be in denial that the Western world is more than willing to be somewhat inconvenienced themselves in order to punish Russia for going full Nazi.

/Those price caps will cause far more harm to the Russian economy than the EU/US one.
 
2022-12-04 10:38:34 PM  
I bookmarked this article for one reason. It is simple and to the point.

That way when I hear "gas is high because of Biden", I can open it. Show it to them.

It's even written with simple words that those that believe that crap can understand. Maybe they will understand...

*Hands my phone to a trumplodyte*

"Nah, that's bullshiat. Biden shuttin' down them pipelines is the reason. Them Russians and towel-heads ain't got nuttin' to do with it."

*Grabs phone back, drinks more. Out of necessity*
 
2022-12-04 11:12:18 PM  

fatalvenom: I bookmarked this article for one reason. It is simple and to the point.

That way when I hear "gas is high because of Biden", I can open it. Show it to them.

It's even written with simple words that those that believe that crap can understand. Maybe they will understand...

*Hands my phone to a trumplodyte*

"Nah, that's bullshiat. Biden shuttin' down them pipelines is the reason. Them Russians and towel-heads ain't got nuttin' to do with it."

*Grabs phone back, drinks more. Out of necessity*


My neighbor is a good dude but one of those guys.  Had to explain to him how the free market works and we can't even stop Exxon from shipping Oil black market to Russia right now.  We can pump all day but unless you nationalize the industry or turn it into a heavily regulated industry like the power companies drilling more oil is gonna do dick to bring oil prices down.  And Saudi and the like are cutting production because they aren't fools, they know a massive recession is coming, has little to do with punishing us.
 
2022-12-05 2:52:51 AM  

ecmoRandomNumbers: I'm sure there will be a refinery *accident* that keeps them up through the holidays.


We need to convince investors to invest a few billion in more refining capacity.

Everybody should know that Biden was only joking when he promised to end fossil fuels.
https://www.youtube.com/watch?v=OJ7MMsheHzQ

Maybe if Biden made that clear, then companies and individuals would invest in more fossil fuel production and refining capacity.

We need to something. The higher oil prices go, the richer Elon Musk gets.
 
2022-12-05 3:15:01 AM  
I don't have much of an idea about where oil is going. The dollar price of oil.

This thread is full of conjecture, but I don't think we will know what is going to move oil prices until after it happens. Could be just about anything. Events in Ukraine could overwhelm markets in either direction. The severity of this winter. Protests in China. Christmas sales figures. A dollar crash.

Somebody will say that production matters, but that is not really the bottleneck at all. The world can pretty much have all the oil it wants if it is willing to pay the price, or accept that warfare and human rights violations and CO2 emissions are perfectly ok.

I guess I see the world all pinched up, which makes it more likely that things will get eased up eventually. We shall see.
 
2022-12-05 6:07:10 AM  

CCNP: ecmoRandomNumbers: I'm sure there will be a refinery *accident* that keeps them up through the holidays.

We need to convince investors to invest a few billion in more refining capacity.

Everybody should know that Biden was only joking when he promised to end fossil fuels.
https://www.youtube.com/watch?v=OJ7MMsheHzQ

Maybe if Biden made that clear, then companies and individuals would invest in more fossil fuel production and refining capacity.

We need to something. The higher oil prices go, the richer Elon Musk gets.


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2022-12-05 11:03:57 AM  
Between China, the US and Europe going all in on EV's, OPEC as a unified cartel will cease to exist in about 10 years or so. 2025 is looking like the year we get price parity, after that they may even get cheaper. EV's as a new car purchase are about to become a no brainer.

/also when I turn 45
//thinking either the Corvette BEV or BMW iM4.
///When they eventually come out.
 
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