Makes one wonder why it couldnt have happened long ago.Remember,gas didnt explode in prices really until 2005,thats almost 10 years ago.10 years of price hikes.And now its down this much from a threatened 4-5 bucks a gallon? just goes to show its rigged.They know everyone NEEDS oil and gas,so they WILL pay for it no matter what.
I do not believe its being orchestrated but is interesting. OPEC is basically price fixing and would be illegal in the USA. The middle east is so dependent on oil revenue now that when the price of oil goes down they pump more so they can take in the same amount of money per month.
You have China using more and more gas and oil. But the newer oil drilling technologies (fracking) along with tar sands oil and shale oil are providing a huge boost to what the USA is able to pump each year. But they are more expensive technologies than just plain pumping oil, so they may cut back on some of that as the price drops.
In the USA each year homes and cars are more efficient. People will continue to want high MPG cars and insulated homes as everyone remembers high oil prices.
Somewhat. Normally this time of year the Saudis lower production to keep the price stable as demand is down. This year they kept it up and there are a couple of theories. Main one is they are threatened by the new US production, fracking. They want the price per barrel to drop below what is profitable for frackers. There is debate on what that level is. The other theory is to hurt the Russians. My vote is with the former.
Latest OPEC mtg they decided to keep up production. It will hurt heavily leveraged frackers but many of them are not highly leveraged.
It is all for the destabilization of the Russian economy.
Sanctions are not enough, hit his people where it matters most.
Or OPEC is trying to have the North American shale group gas fold up their tents and go home.
We're paying $0.99 CAD per litre and most are happy.
The Saudi's want to keep market share but going below $50/barrel is going to wreck their economy because they have nothing else. And then there's the rising production of natural gas and the falling prices there, too. if it continues Putin will have to start selling Girl Scout cookies to break even. Market forces may just overcome our incompetent politicians as well. To be the smartest politician in the world all you would have to do is to do nothing.
Now is the time to top off everything.... even if it is winter blend.
It *will* go up next summer, I just don't see it going below $2.50, and that is a FAIR price.
So got some empty gas cans, fill up NOW. It will be good next summer.
Saudi Arabia is keeping production high on purpose even though worldwide demand is weaker and worldwide supply is higher than before due to US fracking.
So while there are real reasons for the price reduction, Saudi Arabia is ensuring it keeps on going down by not cutting production which is what it normally would do.
Saudi Arabia, Qatar and the Emirates all have a lot of reserves so can afford lower income for years. Countries like Iran are weak economically, have been weakened further by sanctions and bad domestic economic policies, don't have reserves and have relied heavily on oil income.
The reason for Saudi Arabia's action is that they are weakening Iran's economy. And the reason they are doing that is they have ideological differences with Iran (Iran thinks Saudi's rulers are corrupt) and Iran has become the pre-eminent military Arabian power and also seeks to effect change through sponsoring those opposed to Saudi Arabia's rulers, especially since their ally Assad seems to have survived and the west is not being as tough on them on the nuclear weapons issue.