Oil Price Per BBL

[B Gordon]

My understanding is that it actually lowered the price of Diesel in most of Europe due to more supply in the system while spiking US diesel.
In Europe the fuel tax is way high.
As best I remember tighter EPA standards were put in place so that the US could pollute less like clean diesel European cars.
Europe had cleaner diesel long before the USA and because almost all of their fuel is imported, they have been paying a huge premium for many years.

Not sure how much of the diesel price increase was due to US exports and how much was due to higher refining cost.
It has been too many years since I researched that information so I am getting hazy on the specifics.

 

[SoonerP226]

Still $3.49 here, has dropped $.10 since March when I sold my diesel truck.

Most of the prices I've seen are $3.29-$3.49; I'm not sure why Country Boy is selling so low.

 

[Shadowrider]

A month or so ago, the Saudis started selling oil on the spot market for well under the market price. This was a planned, purposeful move meant to lower the global price of oil and destabilize their competitors. I think it actually got away from them and went lower than they planned. Rumor is that they hoped to get the price to the mid-70s, but it just kept going down. Now, they're very close to their break-even price over there.

Market forces didn't cause this. This was a government decision meant to harm other nations. If this sticks for a while, many many US oil jobs will be lost.

Agreed. Have you seen any prognostications on how long this will go on? Personally, I'd tell the Saudis to take a hike, no more $$$ from us for ANYTHING, good luck! Now Imma go drill some shale wells and keep my oil at home. Or not....

 

[SoonerP226]

Europe had cleaner diesel long before the USA and because almost all of their fuel is imported, they have been paying a huge premium for many years.

Fuel taxes in Europe are through the roof--as I recall, they're paying more to the tax man than for the fuel itself.

 

[B Gordon]

A month or so ago, the Saudis started selling oil on the spot market for well under the market price. This was a planned, purposeful move meant to lower the global price of oil and destabilize their competitors. I think it actually got away from them and went lower than they planned. Rumor is that they hoped to get the price to the mid-70s, but it just kept going down. Now, they're very close to their break-even price over there.

Market forces didn't cause this. This was a government decision meant to harm other nations. If this sticks for a while, many many US oil jobs will be lost.

A couple of articles I scanned mentioned that very thing but implied that it is hurting Russia and Venezuela and a couple of other countries way more that it will ever effect the USA.

Even though Saudi Arabia has ramped up production, the USA has been ramping up production for several years.
Is the USA trying to destabilize Venezuela by cutting imports?
Of course not, but that is the secondary effect of us importing less crude from them.
There were even some comments that perhaps the Saudi's are ramping up production in response to the EU sanctions against Russia because there is market share to be gained as a result.
Our government was instrumental in pushing sanctions against Russia so is our government responsible for the Saudi's response?
If Russia backs off their expansionist actions and the sanctions get lifted will the Saudi's cut back on production?

Lots of things in play and I personally feel it is a good thing that we have choices domestically.
How would you like to live in Japan where just about all of their crude and natural gas is imported?

 

[SoonerP226]

The dynamics of the region are more complex than them vs us--they might also be trying to destabilize Iran. Iran is a significant producer but has no (significant) refining capacity, so a cut in crude will hurt them, but they have to import almost all of their refined fuels, so the drop in fuel prices won't help offset the loss.

 

[donner]

The dynamics of the region are more complex than them vs us--they might also be trying to destabilize Iran. Iran is a significant producer but has no (significant) refining capacity, so a cut in crude will hurt them, but they have to import almost all of their refined fuels, so the drop in fuel prices won't help offset the loss.

not to mention it's screwing russia up something awful (combined with sanctions, of course)

 

[Kyle78]

I'll take cheap gas any day. It's been way overpriced and speculators/oil companies have been making record profits.

 

[Eagle Eye]

Who claimed that the saudis are their number one enemy? Isil
Who has been making millions on stolen oil wells? Isil
The enemy of your enemy is your friend, so maybe the saudis and americans are working together to destabilize other countries.
Some of you have been saying, low oil prices are hurting other nations (even the islamic nation) much more than us.

 

[tntrex]

I hope it keep tanking.