Oil at $105

surreal1221

Well-Known Member
One sentence? That's all?

Anyway - it's still too high, and a further decrease in fall contract prices will continue.
 

Lee D

Well-Known Member
Let's hope it does little or no damage to the rigs in the gulf. All it takes is a sneeze of speculation to get the prices up.

Here's hoping it will continue to go down.
 

AMH

Well-Known Member
Ahh yes.. Getting excited over slightly "cheaper" gas.

Reminds me of this.

"I want to go down on you
and make you extremely happy.
Then come back up real slowly
and screw you real good." -With Love, Gas Prices
 

surreal1221

Well-Known Member
Yup.

The ignorant masses will simply be happy. A shame.

We have a long way to go before it reaches a level I feel is acceptable.
 

tpaRob

Well-Known Member
OPEC is hinting at production cuts which of course would raise the prices again.

http://www.msnbc.msn.com/id/12400801/

"Meanwhile, the Organization of Petroleum Exporting Countries' upcoming meeting in Vienna, Austria, continued to weigh on traders' minds. OPEC oil ministers will be deciding whether to trim production in a bid to stall oil's recent slide. Iranian oil minister Gholam Hossein Nozari said he thinks there is too much crude on the market, but some analysts say they believe Saudi Arabia will try to thwart calls to cut production."
 

surreal1221

Well-Known Member
Not necessarily. . .

OPEC is also expecting an over-supply by 1 to 1.5 million barrels a day by year end. More supply than demand? The price will eventually lower to invite consumers to purchase it. . .price won't sky rocket up, because that would only lead to an increase in supply as demand destruction continues.

Further, the USD continues to see a strengthening against a basket of global currencies, leading to more investment in stocks as opposed to a speculation rich commodity market here in the US.

Continued decline, and pricing level near $80 by year end.
 

Matt13C

Well-Known Member
It is still well over what it was a few short years ago with no reason for the huge increase in price. Until it gets back to a reasonable level, meaning sub $60, I still will think it is too high.

Even $60 is too high in my opinion, since it was $20 all of the 90's. But the company line now is $60 is the new break even price for all the new drilling methods so I guess that is what we should hope for.
 

RickRoss747

New Member
I understand for you guys as pilots, but I'm soaking up every cent of the gas prices. It shows you that not everyone hates them. When I graduate, my projected starting salary is going to be $85,000-$90,000 + 10k signing bonus, depending on what company I go with. I'm doing an internship with Schlumberger this Summer for 4.6 k a month. The catch is that I'll never be home, traveling to foreign countries until I get a desk job in Houston after 5 years. I'm praying that there isn't a bust like in the '80s or I'm screwed. Petroleum Engineering is a hard, dirty work, but definitely rewarding and risky. I would do anything to be a pilot, but I decided to not take the risk 2 years ago. So when gas prices go down, the majors hire more or what?
 

tonyw

Well-Known Member
I wouldn't count on it.

OPEC doesn't want oil below $100 a barrel.

They've got the means to make that happen by simply turning off the spigots at some of their fields.
 

Matt13C

Well-Known Member
I wouldn't count on it.

OPEC doesn't want oil below $100 a barrel.

They've got the means to make that happen by simply turning off the spigots at some of their fields.
They do, but they have seen the demand destruction that high prices over a sustained period has had. If price stays at 100bbl, odds are very good many countries and companies will continue to work towards finding alternatives and implementing them quickly.

If prices drop down to 60, while still high, I would bet you will see a pull back in government intervention and expensive innovation programs currently being rolled out by companies. Just like what happened after the high prices of the 70's. It was all about small and efficient, people were talking about ethonal and prices fell and back came the gas guzzlers.

100 barrels at $100 for 5 year or 125 barrels at $60 for 8-10 years?
 

Blip16

Well-Known Member
but oil has fallen like 50/ barrel, yet for the last 2 weeks gas here has been 3.69/gallon. at the highest price of the summer it was i think 3.99

things that make you go hmmmm
 

surreal1221

Well-Known Member
Not really.

The contracts purchased are forward looking, we won't see the reflection of the goods purchased today until October at the earliest.

Just the way the market works. Further, gas stations make their money off of concessions, and see this as a chance to pad their profits just a little bit since for the most part they really haven't been making much money from gasoline sales over the past year to year and a half due to the constant increase in cost and a consumer who is essentially tired of paying for it.
 

Barty

Well-Known Member
It is still well over what it was a few short years ago with no reason for the huge increase in price. Until it gets back to a reasonable level, meaning sub $60, I still will think it is too high.

Even $60 is too high in my opinion, since it was $20 all of the 90's. But the company line now is $60 is the new break even price for all the new drilling methods so I guess that is what we should hope for.
You and I both. I consider the $50-60 range reasonable and realistic for today's market. The runup from $80 to $147 was just completely irrational and was fueled almost entirely due to weaknesses elsewhere in the financial markets. Demand had certainly not risen that drastically in such a short period of time and nor had we had a significant loss of supply, though thanks to the market manipulation of OPEC, supply had remained stagnant from OPEC nations.
 

HeyEng

NAHB Doesn't Give a Crap
Didn't you get your gas rebate check in Alaska?

Yep, the PFD is going to be 3269.00 this year...and a month early at that. Something Sarah Palin got worked out, but of course that isn't reported in the press.

Let's see....$3269, that will pay for 15 gallons of gas a week for the year. Not a bad deal...
 

kellwolf

Piece of Trash
Not really.

The contracts purchased are forward looking, we won't see the reflection of the goods purchased today until October at the earliest.

If you're talking about the price at the pump, that's crazy talk. If that statement were true, we'd see prices slowly increase, not jump through the roof when any tropical storm gets upgraded to a hurricane.

They can't have it both ways by jacking the price as soon as they can, and then saying "Well, it'll take time for it to come down b/c it's forward looking." Sorry, but if that's the way they wanna play it, I'll scream price gouging until I'm blue in the face.....
 
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