Author Topic: Why oil prices are dropping this summer  (Read 1067 times)

0 Members and 1 Guest are viewing this topic.

Offline Wingnut

  • That is the problem with everything. They try and make it better without realizing the old is fine.
  • Hero Member
  • *****
  • Posts: 26,264
  • Gender: Male
Why oil prices are dropping this summer
« on: June 08, 2019, 02:35:52 pm »
The financial world is watching for further contentiousness between United States and Chinese negotiators, as oil traders fear a potential global economic slowdown. Meanwhile, the Organization of Petroleum Exporting Countries (OPEC) is trying to push oil prices higher.

There was a time when OPEC would have been able to do that. However, the oil markets are facing several supply disruptions and yet the price is dropping.

Just in the past month we have seen Iranian oil exports fall to near zero and Venezuelan production plunge below 800,000 barrels per day. At the same time, according to officials, Libyan production could “collapse at any moment,” Kazakhstan’s largest oil field was mostly offline for maintenance and Russia has been suffering from an oil contamination problem. Production from OPEC member nations actually dropped to a four-year low in April. This news would typically signal the market to raise oil prices.

But that’s not happening, in large part because U.S. production has fundamentally changed market perception. Oil traders and the oil market have ignored any news that would send prices higher and instead responded only to fears of an economic downturn and potential resulting decrease in oil demand. WTI, the U.S. oil benchmark, fell over 20 percent from April 23 to June 5. Markets have decided that there is enough oil supply, regardless of what happens in Iran, Venezuela, Libya and Russia. This is largely because of record production from the United States.

https://thehill.com/opinion/energy-environment/447334-why-oil-prices-are-dropping-this-summer

And that genius on the economy and high gas prices Obama...... said that we couldn't drill our way out of the problem. 
I am just a Technicolor Dream Cat riding this kaleidoscope of life.

Offline IsailedawayfromFR

  • Hero Member
  • *****
  • Posts: 18,746
Re: Why oil prices are dropping this summer
« Reply #1 on: June 08, 2019, 03:38:08 pm »
Production from OPEC member nations actually dropped to a four-year low in April.

In spite of this, crude is falling.

Great news.
No punishment, in my opinion, is too great, for the man who can build his greatness upon his country's ruin~  George Washington

Offline Applewood

  • Hero Member
  • *****
  • Posts: 10,361
Re: Why oil prices are dropping this summer
« Reply #2 on: June 09, 2019, 10:15:45 am »
Wish it would make an impact here in PA, but we have politicians who have made sure our gasoline prices stay high, thanks to gas taxes. 

Offline IsailedawayfromFR

  • Hero Member
  • *****
  • Posts: 18,746
Re: Why oil prices are dropping this summer
« Reply #3 on: June 09, 2019, 02:26:05 pm »
Wish it would make an impact here in PA, but we have politicians who have made sure our gasoline prices stay high, thanks to gas taxes.
Making it prohibitively expensive to own a car forces one to move to the city, which is where the libs want you to be for control purposes.
No punishment, in my opinion, is too great, for the man who can build his greatness upon his country's ruin~  George Washington

Offline Applewood

  • Hero Member
  • *****
  • Posts: 10,361
Re: Why oil prices are dropping this summer
« Reply #4 on: June 09, 2019, 07:46:36 pm »
Making it prohibitively expensive to own a car forces one to move to the city, which is where the libs want you to be for control purposes.

In this state the Republicans control the legislature and the last governor, a Republican, signed off on the last gasoline tax hike.

Which demonstrates to me that there is little, if any, difference between the two parties.  Both are tax and spend liberals. 

Offline IsailedawayfromFR

  • Hero Member
  • *****
  • Posts: 18,746
Re: Why oil prices are dropping this summer
« Reply #5 on: June 09, 2019, 10:05:35 pm »
In this state the Republicans control the legislature and the last governor, a Republican, signed off on the last gasoline tax hike.

Which demonstrates to me that there is little, if any, difference between the two parties.  Both are tax and spend liberals.
no argument from me.  A big spending liberal is still a big spending liberal regardless of party affiliation
No punishment, in my opinion, is too great, for the man who can build his greatness upon his country's ruin~  George Washington