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As of 3:03 P.M., a barrel of West Texas Intermediate crude oil is sitting at $49.90 USD. For $42.48, you can get a fifth of Wiser’s Legacy Canadian Whisky – decent stuff, but nothing fancy. If you’ll excuse me, I’m off to buy myself a Hellcat.
38 Comments on “It’s Official: Oil Is Now Cheaper Than Whisky...”
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Hmm, after careful consideration and the fact that it’s -1 Degrees F here you can have the barrel of crude I’ll take the 750 mL of Wiser’s Legacy Canadian Whisky
Hmm, after careful cons1deration and the fact that it’s -1 Degrees F here you can have the barrel of crude I’ll take the 750 mL of Wiser’s Legacy Canadian Whisky
Not a good comparison. LCBO alcohol is a blatant ripoff compared to just about anywhere outside it’s jurisdiction.
Absolutely! LCBO whiskey is aged maybe 6 months, but WTI crude has been aged millions of years.
To be fair, the law requires that Canadian whisky be aged at least 3 years, in wooden barrels. I think Scotch has the same minimum age rule.
It’s really sad that consumers are so foolish and have such a short-sighted nature. They think these artificially depressed prices will last, and now’s a great time to buy a giant car. They won’t, and it isn’t (unless you really need and can afford a giant car) which most can’t.
It’s okay, your low credit score will still get you in a V8 Durango, or Outlander Limited.
You’re right, that’s why I say forget the crude and go for the whisky
Why “artificially” depressed?
Saudi Arabia.
“Oil prices collapsed 32 percent since the Organization of Petroleum Exporting Countries decided to maintain its output target on Nov. 27, amid signs Saudi Arabia and other members are determined to let North American shale drillers and other producers share the burden of reducing an oversupply. ”
Keeping their production artificially high, and basically subsidizing the low prices with their own funds.
As well, “The state-owned producer, known as Saudi Aramco, raised prices for all its crudes in Asia and cut all of them for Europe and most in the U.S.”
They’re doing their best to mess things up here.
Source: http://www.bloomberg.com/news/2015-01-06/saudis-raise-price-of-main-oil-grade-for-asian-buyers.html
I keep saying this , you alls keep telling me I’m wrong…
Let’s see if the bigger vehicles take off in sales until the price goes back up or not .
-Nate
What exactly have you been saying Nate.
Wow ~ my reply posted way out of place .
Nevermind , just the mindless ravings of another old poorly educated old man…
Move along please , nothing to see here , get the hell offa my lawn please .
=8-) .
-Nate
canadian “whiskey” can be colored and flavored and 90% grain alcohol by law, it is an insult to anything it shares a name with. be an adult and drink american irish or scottish.
I do believe Japanese Whiskey is the best in the world.
So far as I am aware, all distilled spirits start out in life as neutral grain spirits. Whiskys are aged, and take colour and taste characteristics from the barrels they’re aged in. White goods aren’t aged. Gin has flavouring agents added to it, vodka is filtered to remove any flavours.
I’m not a whisky drinker (I love a good Scotch, but I’ve found it doesn’t return the favour), but I’ve noticed that people tend to prefer whichever style of whisky they first drink and develop a taste for.
>> So far as I am aware, all distilled spirits start out in life as neutral grain spirits.
It’s much more complicated than that. There are variations in every step of the process. Much too complex a topic to attempt to explain here.
$1.42/gal here in Indiana, let the gas hogs roll!
I would love to have 1.42 here in Florida. RUG is still 2.16 cheapest in my area in North Florida.
The lowest I have seen it in my part of NE FL is 2.19 but it shot but up to 2.29 over night.
If only you had a Chrysler Turbine Car that could run on either.
I’d hold out for the Wiser’s 18, so tasty. Don’t know about this “Legacy” stuff.
Also, for some reason gas in California (Sacramento area) is about $0.15 cheaper than Oregon (Portland Metro). Usually this is the other way around. Perhaps the extra pennies pays for the mini-serv?
I’m working on another piece to submit to Derek.
The very short version, I see nothing stopping oil from declining to $35 a barrel WTI (about $38 Brent). Actually, I don’t see anything that will stop it from dropping to $30.
A lot of things at play on why – but the short short short version is Russia is increasing output (trying to make up the budget short fall on volume – irony) and OPEC keeps saying we aren’t blinking.
The US drillers are getting killed – and I suspect it won’t be long before some of the small, highly leveraged operators who were depending on $100 a barrel of oil will go under, get acquired, or will sell off their drilling rights for pennies on the dollar in an attempt to survive.
But mark my words – no one is blinking and there is nothing to indicate the world is going to magically pick up the slack.
There is A LOT more at play, hopefully if Derek permits, it will be shared here.
Its already started to hit the US oil states hard, I expect a lot of the oil drilling services companies to just vanish.
My company makes products that may be used in oil/ gas/ water exploration. Just before Xmas a well known oil services company with let’s say “significant political connections” (now headquartered in Dubai ) demanded a huge reduction in pricing in 2015 with a ridiculously short deadline to agree.
Our business is pretty diversified so we politely declined. Other vendors may suffer these strong arm tactics.
Interesting times.
Yes! Please send it!
Man am I ever glad I didn’t buy into those oil plots advertised on the radio during the summer last year. Now THERE’re some people going to go broke–if this glut lasts more than a few more months.
I’m with you, APaGttH – at this point, $35 is a very reasonable target.
Remember kids, markets can remain more irrational than you can afford to be. They also tend to overshoot on both extremes before correcting. The question here is how long it will take for things to rebound – months, or years?
Toadster, I look forward to read that. Bring it on.
Forget the whisky I will take straight Kentucky bourbon. I’ll take my corn from a bottle. Good to know gas is going down but don’t go out and buy that Suburban yet. Prices will not stay low.
Jeff,
I love Jack Daniel’s. Great stuff to warm the body and soul.
I found the Single Barrel, Gentleman Jack and some of the other Jack products not as good as the normal Black Label Jack.
Another good drop with a twist of lemon is Sailor Jerry. I’m not a rum person.
I drank a lot of Guiness over Christmas too. You can run a car on that stuff as well. The amount of methane you produce from it is staggering.
For me it is not about buying but selling. I was going to sell the Edge and get something more economical and smaller but there is no point in that right now. Better to burn more cheap gas now and make the switch just as the prices start to go up.
Which is when the prices of more economical cars will go up, too.
It won’t last. I guarantee it. I HIGHLY doubt these low prices will last through summer.
I think we will enjoy a year of low prices. ’16 may be a different story.
Should Putin decide to climb down – not happening
Iran kills it nukes- a long shot
I would see a change. BUT this ain’t happening soon. However if the Omani succession dispute continues to go South we may see some change
I can find decent rum here for that money. And with some luck a good single malt.
Lets see if the comment posts with the 2nd attempt.
For some historical perspective, here is an article with a chart showing oil prices inflation adjusted to 2014 dollars.
http://inflationdata.com/Inflation/Inflation_Rate/Historical_Oil_Prices_Chart.asp
Note that we’ve had both peaks and dips in the price of oil and the past along with long plateaus of a new normal. Enjoy gasoline prices <$2.00/gallon in 2015 while saving the money you would have spent on gasoline for a rainy day. The suddenly lower prices are telling you that demand is lower than expected, strongly suggesting economic problems around the world. Wouldn't be unusual to have a recession about 8 years after the previous one.
An old timer at Conoco offered some insight into oil companies back in 1988 during another period of low oil prices. His observation was that the oil companies that survive wide swings in the price of oil have good balance between their upstream operations, getting oil out of the ground, and their downstream operations, making products out of oil. The history of Exxon/Mobil dates back to Standard Oil providing kerosene for lamps before the Civil War. Balanced oil companies survive for generations while oil companies too focused on either side get wiped out by changes in the price of oil.
For some historical perspective, here is an article with a chart showing oil prices inflation adjusted to 2014 dollars.
Note that we’ve had both peaks and dips in the price of oil and the past along with long plateaus of a new normal. Enjoy gasoline prices <$2.00/gallon in 2015 while saving the money you would have spent on gasoline for a rainy day. The suddenly lower prices are telling you that demand is lower than expected, strongly suggesting economic problems around the world. Wouldn't be unusual to have a recession about 8 years after the previous one.
An old timer at Conoco offered some insight into oil companies back in 1988 during another period of low oil prices. His observation was that the oil companies that survive wide swings in the price of oil have good balance between their upstream operations, getting oil out of the ground, and their downstream operations, making products out of oil. The history of Exxon/Mobil dates back to Standard Oil providing kerosene for lamps before the Civil War. Balanced oil companies survive for generations while oil companies too focused on either side get wiped out by changes in the price of oil.
All this info about distilling Alcohol into drinks is fascinating .
I come from a long line of drunks but I know hardly anything about how the various beverages are actually made .
Me , I like American ‘ pi$$water ‘ beers .
You know the old saw ” ” Why is drinking Coors Beer like making love in a canoe ? ” .
-Nate