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2014-12-15 Economy

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Posted by Steve White 2014-12-15 00:00|| || Front Page|| [11128 views ] Top

#1 Me thinks the floor price of oil is about $35 a barrel.

The $100+ oil prices are a bubble unsupportable by economics. The speculators drove up the price of oil. When it costs a country less than $5 a barrel to deliver it to Andover, Delaware, $75 a barrel is a lot of profit.

Hopefully this pressure from Canada and the US oil production will kill off OPEC rather than vice versa.

Posted by Mystic 2014-12-15 01:25|| 2014-12-15 01:25|| Front Page Top

Before the oil crisis and embargo of the early 1970's Light Sweet Crude was selling for under $4.00 per barrel. I wouldn't attempt to put a temporary bottom on it just yet.

Posted by Besoeker 2014-12-15 04:36|| 2014-12-15 04:36|| Front Page Top

#3 The House of Saud is trying to explain to the west that it is necessary to include what the Saudis want into economic calculations, and don't think just because you've reached self-sufficiency that you can uncouple from their little operation.
The pusher always wins.

Posted by ed in texas 2014-12-15 08:00|| 2014-12-15 08:00|| Front Page Top

#4 Spot on Ed. They've [Soodies and others] leveraged a highly effective over-pricing scheme for decades, and look at the Federal and State tax revenues it has produced. No, I doubt the scheme will somehow quietly go away.

Posted by Besoeker 2014-12-15 10:56|| 2014-12-15 10:56|| Front Page Top

#5 They are riding this out hoping to drive the shale and US exploration into mothballs. We are in an interesting strategic game between the western oil companies and OPEC. If OPEC decides to reduce production we have won the oil wars. This is their last chance fight to maintain control of the world market.

Posted by 49 Pan 2014-12-15 11:34|| 2014-12-15 11:34|| Front Page Top

#6 Nothing says it has to be House Saud that reaps the wealth from Arabian oil. Wink Wink.

Posted by BrerRabbit 2014-12-15 18:29|| 2014-12-15 18:29|| Front Page Top

#7 Is somebody Sunni trying to cut into the capabilities of a Shiite neighbor, perhaps?

Posted by James 2014-12-15 19:21|| http://idontknowbut.blogspot.com 2014-12-15 19:21|| Front Page Top

#8 "We can't murder other Mooselimbs, but we can starve them out."

Posted by Mullah Richard 2014-12-15 20:58|| 2014-12-15 20:58|| Front Page Top

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