Crude Oil Tumbles Under $40 as Record Supply Glut Deepens Slide

[Purveyor]

Oil dropped below $40 a barrel in New York for the first time since August as producers’ output swelled global inventories to a record.

U.S. crude stockpiles climbed to 487.3 million barrels last week, the highest for this time of year since 1930, government data show. Oil inventories have expanded to almost 3 billion barrels because of growing output in OPEC and elsewhere, the International Energy Agency said in a report on Friday.

Crude has dropped by almost half in the past year as the Organization of Petroleum Exporting Countries pumped above its collective quota and Russian output rose to a post-Soviet high, outpacing demand growth. Iran is pushing to regain oil sales lost to sanctions after agreeing in July to accept limits on its nuclear work return for market access. Oil price competition in Europe is set to intensify when Iranian crude returns, the IEA said.

"There’s a massive inventory overhang so the market will remain very soft," said Adam Wise, who helps run a $7 billion oil and natural gas bond and private equity portfolio as a managing director at John Hancock in Boston. "There’s still inventory growth, Iran is planning to boost output by 500,000 barrels, there’s no sign OPEC will come to an agreement on Dec. 4, and there are demand concerns in Europe and Asia.
WTI, Brent

WTI for December delivery dropped 59 cents, or 1.5 percent, to $40.08 a barrel at 12:08 p.m. on the New York Mercantile Exchange. Futures dropped as much as 1.9 percent to $39.91, the lowest since Aug. 27. The volume of all futures traded was 36 percent above the 100-day average.

more...

http://www.bloomberg.com/news/articles/2015-11-18/oil-halts-slide-near-two-month-low-as-u-s-stockpiles-decline

[HickFromTheTick]

1. Price of crude drops 70%, price of Ontario gas drops 22%...yay n/t

[librechik]

2. and it hurts oil-owning ISIS! n/t

[COLGATE4]

3. That ought to do wonders for

Maduro's economy. Wonder what 'provocation' he'll dream up to distract the masses.

[Andy823]

4. Back up to $40.91

As of few minutes ago. It will bounce around up an down till next week. Oil has been going down, but gas prices, at least here in my area of Washington state, have been the same for the last few weeks. Currently at $2.57 a gallon. Gas prices will not go down till after Thanksgiving. Just like in the summer, now prices stay high until "after" a holiday, then they go down. Nothing but GREED setting prices these days.

[madinmaryland]

6. It's $1.79 here in SW Ohio. It'll probably bounce back up over $2.00 in the next couple of weeks.

[philosslayer]

5. Whatever happened to Peak Oil?

Now all of a sudden we have more of the stuff than we know what to do with.

[KamaAina]

7. Fracking

exploiting tertiary reserves that hadn't been factored into the peak oil calculations. But it's out there; we will never 'run out" of oil, it will simply become too expensive to produce relative to wind, solar, etc.

[Johonny]

8. Drill baby, Drill

oh, wait we don't need to.

[DFW]

9. Here in Europe, it's blow, baby, blow

Wind turbines going up everywhere.