The AP reports on the ongoing oil price collapse. “OPEC said at an emergency meeting Friday that it will slash oil production by 1.5 million barrels to stem the ‘dramatic collapse’ of oil prices, but crude prices plunged 7 percent anyway as financial markets spiraled downward across the globe.” In the face of OPEC’s proclamation, oil opening below $64/barrel this morning; down over half from the $140 highs of just a few short months ago. Even with the growth in China, India and the rest of Asia, the US still consumes a fourth of the world’s oil burn, and “U.S. demand is down nearly 10 percent during the past four weeks year on year.” OPEC hopes to talk Russia into playing along with a supply squeeze, but Russia has problems of it’s own and typically goes her own way on these matters. Other oil producers are singing the blues (’cause they never thought they’d lose). “Iran, Venezuela and other OPEC members having suggested that for them, selling oil under $80 was a loss-maker, and Iraq on Thursday said it would have to rethink next year’s national budget if prices remain under that level.” OPEC’s El-Badri is unsympathetic: “OPEC cannot bail out the problems of others.” Words to live by.
Find Reviews by Make:
Read all comments
Poor little oil dicktators (intentional spelling)
They probably needed to cut 4mbbl day to reach their unofficial $90 floor. At least one analyst I have read has said.
Look on the bright side, massive domestic subsidies necessary because your own people are too dirt poor to buy their own natural resources are cheaper again!
You figured they’d be happy with $65 a barrel considering it was half, or even a third of that, in most of our recent memories. I think OPEC countries may be panicking because they took out numerous loans against future revenues at a per-barrel price higher than what the market is currently paying.
Gotta finish that new skyscraper in Dubai!
fisher72
Is this one of the same analysts that predicted +$200/barrel by this past mid-summer? The truth about analysts is that the ones that match the story of the day get themselves quoted. Where are all the guys that were predicting $200 oil this summer. Bet they are still in their jobs and are now predicting $50 oil. All models are wrong, some however are useful (George P. Box). I have yet to see a useful model of short-term $/bbl, you can’t model speculation and whim. Just look how far off the experts are on the weekly US inventory report every week.
Gas is 2.19 today here in Indy
The guy on CNBC says in the 1.XX per gal range by next month.
Time to lay off the Prius proles and fire up the Tundra/Sequoia line.
SWEET! I’m taking my gas lovin’ Jeep for a long drive this weekend. Plus to celebrate, screw tread lightly… I’m looking for flowers and small animals to drive over. Just kidding you oil haters. ;)
U.S. consumption is down 10%. Yeah, people save themselves alot of gas each week by not having jobs to drive to anymore. At least unemployment is helping to keep gas prices low !.
Who’d have thunk it….gasoline prices really are immune to the laws of supply and demand…duh…
Unless demand fell 90% considering about a month back I was paying $3.89 and got it for $2.11 today and falling…