My predictions on OPEC and oil prices

[freebeard]

Originally Posted by Eddie25

what was the highest u guys in the us paid for fuel? talking recently not like 10 or more years ago

I burn ethanol-free premium. Before the down-turn, it was $5.19/gallon. My last purchase was at $4.20.

OTOH I pay 5¢ per kilowatt-hour for electricity.

[niky]

The Saudis are never going to do anything to hurt themselves.

Back in the day, everyone else relied on SA to cut production to prop up prices during supply gluts. But every time they did, they simply lost market share. It's like asking the farmer with the biggest field to stop growing food so everyone else can get in on the action.

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This time Farmer Brown didn't budge.

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And that is probably going to be the theme every time the prices go back up to the $80-$100 level and there's a new oil rush in fracktown... at least until the seemingly bottomless Saudi reserves start to falter.

[drainoil]

$2.65/gallon here for 87 octane (with 10% ethanol).

I hope North Dakota and the Canadian oil sands can survive what OPEC is doing to the market.

[Arragonis]

During the peak of "The Peak" in the mid-2000s several people suggested that the Saudis and in particular Ghawar was in decline. Once that happens then, it was said, the world oil output is in decline. Of course now we know different.

Its interesting that the low oil price now coincides with the Saudis getting "militaristic", e.g. Yemen and probably more action against IS and Iran - maybe there is some panic / worry there, could also explain the recent change in the succession line.



Highest price I have paid was £1.42 a litre which is ~£5.62 a US Gallon, or at today's exchange rate $8.72 a US gallon.

And you wonder why we don't buy trucks ?

[cRiPpLe_rOoStEr]

I wouldn't expect the Saudis to engage in a direct confrontation against ISIS.

[Arragonis]

Agreed - more likely by proxy, not direct.

[gone-ot]

Originally Posted by Arragonis

Agreed - more likely by proxy, not direct.

US "blood" for Arab "oil" time...again?

[Arragonis]

Probably not as US has it's own oil these days. More local agents.

Dangerous game.

[freebeard]

https://www.google.com/search?q=saud+pakistan+yemen

Pakistani boots on the ground.

[Arragonis]

Pakistan said no to putting troops in, but is "supporting" in the UN and elsewhere.