Crude oil prices continue fall

Oil prices have plunged again.

After meandering lower for the last two weeks, the Brent price has suddenly dropped about 7 US cents in a couple of days, West Texas about the same.

Surely our petrol prices will be lowered again? Is the Commerce Commission watching? Perhaps the AA?

Over three months, there’s been a very consistent drop. The Saudis will be pleased at the controlled plunge, happy they’ve avoided panic selling and hoping for higher prices in the long run.

Unfortunately it means the Western economies are still in the doldrums. Maybe China can save us?

Anybody been following the reasons behind the oil price slump?

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Richard C (NZ)
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Richard C (NZ)

“Anybody been following the reasons behind the oil price slump?” Oil Price History and Analysis http://www.wtrg.com/prices.htm My experience. By the end of 1998, the nominal price was down to $10 after plummeting from pre Kyoto Protocol $18. I took a financial hammering because I was trying to make a living trading oil exploration options at the time among other things. The KP was the straw that broke (my) camel’s back and many oil explorers on the Australian board ceased operations. I stayed in far too long because I wasn’t reading the big picture signs whilst immersed in drilling reports etc. Plus the internet wasn’t as pervasive as it is now so putting the picture together was not nearly as easy for me as it is now. http://www.wtrg.com/oil_graphs/small/crudeoilprice9703.gif Being of optimistic nature, I found it difficult to conceive that the price would drop by 2/3 from $30 to $10 in the space of 2 years but it did. Similarly right now, people will find it difficult to conceive that oil prices could collapse in that fashion but there is no reason why not. Gold on the other hand will probably have good support because… Read more »

Billy
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Billy

Hi Richard C.And any other.I have been looking at the study of the earth population,which some say is too high.Delving a little further,I believe the total mass of humans is 287 million tonnes.Obesity gives an increase of 15 million tonnes.I am only 60kg’s,so al gore would make perhaps nearly 3 of me.I have only looked at this tonight,so have to say my figures may be wrong,I need you experts to tell me if we tackled obesity, would it in fact lead to the betterment of our world?I know I’m off topic,but just wondered how many people the planet could sustain if we were all an average weight?Just thinking.My mind boggles.

Richard C (NZ)
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Richard C (NZ)

“….if we tackled obesity, would it in fact lead to the betterment of our world?”

Probably not if you’re a fast food franchisee or part of the supply chain. Layoffs, redundancies, riots, chaos. Factories left idle, crops growing wild, animals gone feral, it just wouldn’t work – too many unintended consequences.

Besides, obesity drives the global economy. As the song goes:-

“Fat bottomed girls, you make the rockin’ world go round”

Citation http://www.elyrics.net/read/q/queen-lyrics/fat-bottomed-girls-lyrics.html

Billy
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Billy

LOL.Yeah,fair enough.I do like fat bottomed girls.Or for that matter,slim bottomed girls.In fact,any bottomed girls.LOL.I see Rio+20 finished in failure,or as Marc Morano said,that was a success for the poor people of the world.Just spent a few days in Hamilton.There was a couple of really good frosts,but stopped my system from freezing by adding alcohol to my system.Mt Egmont was a picture a few days ago.The sun reflecting off the snow was amazing.So cold at night here I bought a sheepskin coat for my dog.Have a good night,see you soon,cheers,Billy

Doug Proctor
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Doug Proctor

I, too, am in the oil business. The company I was with in Jan ’98 went insolvent and bankrupt when oil prices in December at $26/bbl went to $10/barrel in January. Right now the one I’m with is selling off assets to pay down debt created during the +$100 days, as the current prices don’t produce enough cash flow to handle costs plus new investments. One wonders why this is before one wonders why there is a further price drop? The US and other nations have not recovered from the 2008 or earlier slump. In fact the economies are worse: when you hear of a 0.1% rise in GDP in inflationary times (even small ones) that means that the economies are shrinking. Our economies are tied to energy use as understood by all who argue for cheap energy. On the reverse side, our energy use is tied to our economy by all who try to make a living in it. The demand for oil and gas is less than the current supply situation, regardless of the cost of the product. Gas storage is at an all time high, while less-conventional oil sources are… Read more »

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