The "news" is upset that crude oil prices fell 12% ???

[INresponse]

Am I reading this wrong or is this "news" report complaining about a drop in the price of crude oil?
Sooo, they want us to pay $4 or $5 a gallon, or more, for gasoline?

"WTI crude oil tumbled more than 12%, or $15, to settle at $108.7 per barrel, registering its worst day since Nov. 26. Earlier this week, WTI topped $130 per barrel briefly — a 13-year high — during escalated geopolitical tensions.
Brent crude oil, the international benchmark, fell a similar 13%, or $16.8 to $111.1, for its biggest one-day drop since April 2020. Brent has just hit $139 on Monday, its highest since 2008.
The move in oil lower came amid indications of possible progress by the U.S. in encouraging more oil production from other sources. Reuters reported that Iraq said it could increase output if OPEC+ asks. Secretary of State Antony Blinken also signaled that UAE would support increased production by OPEC+."

https://www.msn.com/.../oil-drops-12-for-worst.../ar-AAUQLAc

 

[Curmudgeon]

The move in oil lower came amid indications of possible progress by the U.S. in encouraging more oil production from other sources. Reuters reported that Iraq said it could increase output if OPEC+ asks. Secretary of State Antony Blinken also signaled that UAE would support increased production by OPEC+."

I find it odd that Reuters is unaware of this.

https://www.msn.com/en-us/news/worl...-calls-disappointed-with-us-report/ar-AAUPdud

 

[Supervisor42]

Am I reading this wrong or is this "news" report complaining about a drop in the price of crude oil?
Sooo, they want us to pay $4 or $5 a gallon, or more, for gasoline?

"WTI crude oil tumbled more than 12%, or $15, to settle at $108.7 per barrel, registering its worst day since Nov. 26. Earlier this week, WTI topped $130 per barrel briefly — a 13-year high — during escalated geopolitical tensions.
Brent crude oil, the international benchmark, fell a similar 13%, or $16.8 to $111.1, for its biggest one-day drop since April 2020. Brent has just hit $139 on Monday, its highest since 2008.
The move in oil lower came amid indications of possible progress by the U.S. in encouraging more oil production from other sources. Reuters reported that Iraq said it could increase output if OPEC+ asks. Secretary of State Antony Blinken also signaled that UAE would support increased production by OPEC+."

https://www.msn.com/.../oil-drops-12-for-worst.../ar-AAUQLAc

Of course they are. They had a perfectly good covid-panic going and Putin killed it.
Then they had a good oil & gasoline panic going and you put 2 rounds right thru the middle of it.
Panic sells news. No panic, no Amerricans watching their commercials. They are grasping at straws now.
In case nobody has been watching , the invasion of Ukraine has ground to a halt.
The citizens have dug in and the fragile people have been evacuated.
Only thing on the news lately has been about the refugees.
Back on topic: You can stick any price on anything you want. That doesn't mean people will pay it. They tried putting $300 on a sheet of plywood when the pandemic started.
They sold zero sheets.
Was that price real? No.

 

[Supervisor42]

Am I reading this wrong or is this "news" report complaining about a drop in the price of crude oil?
Sooo, they want us to pay $4 or $5 a gallon, or more, for gasoline?

"WTI crude oil tumbled more than 12%, or $15, to settle at $108.7 per barrel, registering its worst day since Nov. 26. Earlier this week, WTI topped $130 per barrel briefly — a 13-year high — during escalated geopolitical tensions.
Brent crude oil, the international benchmark, fell a similar 13%, or $16.8 to $111.1, for its biggest one-day drop since April 2020. Brent has just hit $139 on Monday, its highest since 2008.
The move in oil lower came amid indications of possible progress by the U.S. in encouraging more oil production from other sources. Reuters reported that Iraq said it could increase output if OPEC+ asks. Secretary of State Antony Blinken also signaled that UAE would support increased production by OPEC+."

https://www.msn.com/.../oil-drops-12-for-worst.../ar-AAUQLAc

Update: Has anybody noticed that the crude oil price has sank into the 60's lately?
Look if you can see some magic happen after January 20th:

OMG! Not lower gas prices too!!!

(Ya'think 'drill, baby drill!' was not just a campaign slogan?)

 

[Mountain trapper]

Update: Has anybody noticed that the crude oil price has sank into the 60's lately?
Look if you can see some magic happen after January 20th:
View attachment 174682
OMG! Not lower gas prices too!!!View attachment 174683
(Ya'think 'drill, baby drill!' was not just a campaign slogan?)

It hasn't dropped much here. We're still at $3.29+. I don't consider low gas prices until it drops under a buck a gallon.

 

[EastenerWesterner]

I saw a wide range of diesel prices this weekend. Around here a little south of 4.50. Decided not to attempt with my hay trailer and fill halfway up the trip @5.49. Stopped at a Rez before coming back, 3.65

 

[Mountain trapper]

I saw a wide range of diesel prices this weekend. Around here a little south of 4.50. Decided not to attempt with my hay trailer and fill halfway up the trip @5.49. Stopped at a Rez before coming back, 3.65

I think I paid $3.33 for off-road winter grade diesel. I recently bought 200 gallons to get me through to late spring.

 

[Supervisor42]

It hasn't dropped much here. We're still at $3.29+. I don't consider low gas prices until it drops under a buck a gallon.

It takes 3 months or longer for a drop in crude prices to work it's way thru the pipeline (pun) before it affects gas prices.
Go back to when this thread started in 2022 when crude was $130/bbl, and tell us what you were paying for gas back then.

 

[Michele My Belle]

It takes 3 months or longer for a drop in crude prices to work it's way thru the pipeline (pun) before it affects gas prices.
Go back to when this thread started in 2022 when crude was $130/bbl, and tell us what you were paying for gas back then.

In 2019, I was paying $1.78/gallon at the Walmart Murphy Oil in Jefferson.
Three (3) months after Joe Bribem was installed (& 99 garbage "Executive" orders) I was paying nearly $4/gallon.

 

[Mountain trapper]

It takes 3 months or longer for a drop in crude prices to work it's way thru the pipeline (pun) before it affects gas prices.
Go back to when this thread started in 2022 when crude was $130/bbl, and tell us what you were paying for gas back then.

Yep. I know how it works. I was in E&P (exploration & production) and midstream (pipelines) for many years. One thing for sure, gas prices never seems to drop equal to the drop in price of crude. A lot of times when the price at the pump does drop, federal, state and local governments like to add additional taxes on the price of fuel. Their reasoning is; "we're used to paying high prices at the pump, so we won't notice". And it works every time.

 

[M0del_31]

The oil speculators must be expecting no wars in the middle east, US production to go up drastically, the economy to slow because of tariffs and probably no war in Ukraine. Any one of those cases goes south, you can expect oil to be speculated up to the moon.

 

[Supervisor42]

The oil speculators must be expecting no wars in the middle east, US production to go up drastically, the economy to slow because of tariffs and probably no war in Ukraine. Any one of those cases goes south, you can expect oil to be speculated up to the moon.

Supply and demand, rule the day.
If we vastly increase our production, prices will fall.
At least we are not addicted to foreign oil, like in the past:
https://www.homesteadingforum.org/threads/and-just-like-that-the-syrian-civil-war-is-over-damascus-has-fallen.38596/post-1046241
We dug our way out of that hole, then 'stupidity' hit again :
https://www.homesteadingforum.org/threads/markets.15267/post-441367

 

[havasu]

I learned from vacation cruising that $70 a barrel is the magic number. If crude goes to $70.01 a barrel, they tack on an additional surcharge per passenger. An oil guy told me this 20 years ago, and holds true today.

 

[Neb]

I learned from vacation cruising that $70 a barrel is the magic number. If crude goes to $70.01 a barrel, they tack on an additional surcharge per passenger. An oil guy told me this 20 years ago, and holds true today.

While that is how air lines handle fluctuating oil prices above $70/brl there other factors that come into play with oil prices.

Below a certain amount Russia can't turn a profit over the cost of production. Another price point affects fracking and profit potential.

One good aspect of the price of oil dropping is the opportunity to restore the national oil reserves.

Ben

 

[EastenerWesterner]

I know I pay to much in taxes about $1 a gallon. But I saw a $2 difference per gallon