General Discussion

Spider Jerusalem

(21,786 posts)

13. Is it really?

Sun Dec 14, 2014, 05:03 PM

Dec 2014

Do you know WHY crude oil is below $60? Weak demand from China and Europe because of slowing economies, which is a sign of a potential new global recession; this isn't really a good thing. (NB that oil hit $34 a barrel in December of 2008.) The Saudis are taking advantage of declining demand to drive prices down by maintaining production in order to put US fracking out of business. Fracking isn't very profitable at current prices; a lot of drilling rigs in North Dakota and Texas are idle, now. If US producers blink, then you can expect prices to rise as fracked oil production declines. However the fact remains that conventional crude oil production peaked nearly a decade ago.

Edit history

Please sign in to view edit histories.

Recommendations

0 members have recommended this reply (displayed in chronological order):

57 replies

= new reply since forum marked as read

Highlight:

Crude is below $60. Literally everything you've been told before about energy is wrong right now. [View all] Recursion Dec 2014 OP

I think the sheiks have decided to cash out and forget it. MohRokTah Dec 2014 #1

267 billion barrels of proven oil reserves in Saudi alone makes your claim doubling entertaining. Fred Sanders Dec 2014 #9

Says who? The Saudis? CanonRay Dec 2014 #34

You're correct JonLP24 Dec 2014 #37

Definitely a tipping point for global climate change Fumesucker Dec 2014 #2

Literally everything? I was told E=mc2. That is wrong right now? DesMoinesDem Dec 2014 #3

Yes, those are also wrong. Recursion Dec 2014 #4

The latter has been known to be wrong since the Manhattan project. Donald Ian Rankin Dec 2014 #25

There are probably a lot of families that are making good use of the savings on gas prices. Travis_0004 Dec 2014 #5

Meaning what? oberliner Dec 2014 #6

there is another OP around here Mosby Dec 2014 #7

Actually it is Saudi Arabia trying to kneecap the shale oil producers hack89 Dec 2014 #14

makes sense Mosby Dec 2014 #16

Venezula and Russia are fucked hack89 Dec 2014 #17

No, that just makes it a twofer for the Saudis Nevernose Dec 2014 #33

And like I said in Nov, it makes no sense. joshcryer Dec 2014 #20

It makes sense in that the prices going back up is exactly what Saudi Arabia wants JonLP24 Dec 2014 #38

Actually, the Saudis may be more interested in knee-capping Iran and maybe Russia. amandabeech Dec 2014 #39

It was a bubble market. hunter Dec 2014 #8

So all that stuff about "peak oil" was nonsense? (nt) Nye Bevan Dec 2014 #10

In fairness, I did say that years ago (nt) Recursion Dec 2014 #11

All a bunch of lies to justify the artificially high prices. Jesus Malverde Dec 2014 #41

Yes well I rolled my eyes long ago on the oil FUD bullshit. Rex Dec 2014 #12

The spotted owl killing off the timber industry in the West theory was bullshit, too. Major Hogwash Dec 2014 #32

Is it really? Spider Jerusalem Dec 2014 #13

You've always struck me as a guy who knows his shit. If what you're saying is true. We're gonna Guy Whitey Corngood Dec 2014 #40

Yeah, it's a grenade. I don't think anybody knows what the effects will be. bemildred Dec 2014 #57

People said the same when oil plunged into the $40/barrel range during the Great Recession NickB79 Dec 2014 #15

That happened during a global recession with low demand. joshcryer Dec 2014 #19

... Spider Jerusalem Dec 2014 #22

The point is the trigger. joshcryer Dec 2014 #26

The trigger is the economic slowdown in China and Europe. Spider Jerusalem Dec 2014 #29

OPEC used to slow production with slowed demand. joshcryer Dec 2014 #44

Except when they didn't. Spider Jerusalem Dec 2014 #49

Do you think that's happening again? joshcryer Dec 2014 #50

I think it's certainly a possibility, considering the recent tensions with Russia over Ukraine. Spider Jerusalem Dec 2014 #53

I would be surprised if the US or Kerry had that influence anymore. joshcryer Dec 2014 #54

The US supplies Saudi Arabia with their military hardware. Spider Jerusalem Dec 2014 #55

China and Europe do not profit from high oil prices NickB79 Dec 2014 #42

The EIA report explicitly mentions Russia. joshcryer Dec 2014 #45

We're currently seeing falling demand from Europe and China as their economies slow NickB79 Dec 2014 #23

No, the lower forecast is due to projected economic slowdown. joshcryer Dec 2014 #24

A recession next year would be real convenient doc03 Dec 2014 #35

It's crazy land. joshcryer Dec 2014 #18

The Saudis are doing us a huge favor. Vinca Dec 2014 #21

It's killing Putin. dawg Dec 2014 #27

It's being manipulated Warpy Dec 2014 #31

Thanks. First one here to get it. n/t truth2power Dec 2014 #56

Any need now for the XL pipeline has vanished in to thin air!! Major Hogwash Dec 2014 #28

It's going to kill off the tar sands for a while Warpy Dec 2014 #30

Renewable energy relies more on natural gas. joshcryer Dec 2014 #46

I don't get it JonLP24 Dec 2014 #36

This guy obviously gets the credit.... Adrahil Dec 2014 #43

I see this as is a temporary political ploy herding cats Dec 2014 #47

The real danger is that declining prices will lead to increased use bhikkhu Dec 2014 #48

Everything except that current price is 'actual demand' House of Roberts Dec 2014 #51

Crude at $60/bl isn't a tipping point; dosn't change anything in the long run. Albertoo Dec 2014 #52