Oil tumbles below $100 a barrel
Source: CNN
US oil prices tumbled below $100 a barrel on Monday, unwinding a significant chunk of the recent spike caused by Russia's invasion of Ukraine.
Oil plunged more than 8%, touching a low of $99.76 a barrel. That means oil has lost almost roughly quarter of its value since touching a near 14-year high of $130.50 a barrel on March 6.
It's the first time oil has traded below $100 since March 1.
Brent crude, the world benchmark, dropped more than 7% to $104.35 a barrel in recent trading. That marks a sharp pullback from the recent peak of nearly $140 a barrel.
Read more: https://www.msn.com/en-us/money/markets/oil-briefly-tumbles-below-dollar100-a-barrel-thats-good-news-for-gas-prices/ar-AAV2Jxd
Let's hope the trend continues.
BradAllison
(1,879 posts)LOL. Not when you have an industry laced with greed and hatred of the current administration.
Grokenstein
(5,707 posts)...I can't wait to see all the drooling redcap buffoons rush back to the pumps to scrape off the Joe Biden "I Did That!" stickers they plastered on when prices were high.
Sapient Donkey
(1,568 posts)Omg Biden is trying to destroy the US oil industry by making oil so cheap!!!!! or They are only dropping because Biden killed the economy. This isnt a good thing
Its all pretty predictable.
I mean, at least if we base it on what they were saying when prices fell massively when Obama was president.
IronLionZion
(45,259 posts)you're so funny
NotHardly
(1,062 posts)Sapient Donkey
(1,568 posts)orangecrush
(19,236 posts)Fuck 'em.
Rebl2
(13,311 posts)If they do go down it will drop a cent or two, but when they go up its like five or ten cents all at once. Has been that way for far at least thirty years, probably longer.
ProfessorGAC
(64,425 posts)And, while I have no love for the petro refiners, they don't set price. They get the advantage of higher prices, when they rise faster than crude. But, they don't set prices.
The gambling commodities traders are the cause of the gross overreaction to a threat on 3.4% of world oil supply.
They reacted like Russia is a third of the world oil supply, rather than a thirtieth.
Kaleva
(36,146 posts)ffr
(22,649 posts)Let's get rolling on Biden's Build Back Better and fuck-off to the oil industry extortionists!
Liberate yourself form the internal combustion vehicle and let the rest of the world duke it out. What nonsense!
BradAllison
(1,879 posts)Only liberal wackos still believe in BBB, and people who want "free shit", I've learned that here.
ffr
(22,649 posts)The power is within each of us. Make Joe Manchin's vote for dirty fossil fuels irrelevant. It'll snowball from there.
BradAllison
(1,879 posts)Too expensive for me. Like prices at the pump the power is controlled by our wallet. My best bet is vehicles that get 36 MPG and has been for 25 years.
Blues Heron
(5,898 posts)used of course, but they are out there.
BradAllison
(1,879 posts)Then again now is not the time to buy any car.
Blues Heron
(5,898 posts)BradAllison
(1,879 posts)I purchased a 2013 Toyota Corolla for 8K in 2020.
RipVanWinkle
(190 posts)Once you get over the price-sticker shock, youll be glad you got one.
It was one of the best decisions I ever made.
rownesheck
(2,343 posts)but I'm worried what happens if the batteries fail. Aren't they really expensive to replace?
RipVanWinkle
(190 posts)the likelihood you will have a battery failure is pretty, pretty low. Most manufacturers will have an 8-year, 100,000 mile warranty on the battery pack, or something similar. In all likelihood, the battery pack will last much longer. For example, a battery pack on a Tesla should last anywhere from 300,000 to 500,000 miles.
RipVanWinkle
(190 posts)By the way, I've watched several YouTube videos with Kyle Conner. Kyle drives EVs to the max. He doesn't mess around. He has a lead foot. He does a lot of supercharging, which is hard on a Tesla battery.
In the story, Kyle points out that "...more than 50 percent of his Model 3's lifetime charging has been done at a DC fast charger/Tesla Supercharger, which should make a notable difference in the battery's degradation. Fast charging is known to contribute to battery degradation."
My opinion: if Kyle Conner's personal Tesla Model 3 had a 10% range loss after 100,000 miles, most anyone else should have less than 10%.
L. Coyote
(51,129 posts)LakeArenal
(28,729 posts)The will say they beat Brandon.
twodogsbarking
(9,308 posts)In your dreams.
DemocraticPatriot
(4,170 posts)but drip down much more slowly when oil prices drop.
It's a scam.
Slammer
(714 posts)Well, the people who own the gas stations have to charge enough right now for the fuel that's in their underground tanks to pay for their next shipment of fuel, however much that next shipment of fuel might cost.
The trucks that come and fill their underground storage tanks don't operate off of credit. They get paid right then or they don't don't sell the fuel to the gas station. (Based on the experience of a family member who owns a convenience store.)
So when oil prices go up, they have to raise prices PDQ or risk not having enough money to pay for their next shipment of fuel. (A typical gas station sell thousands of gallons a day. So 10% increase in the price of gas for them to buy, for example, can easily outstrip all the profit the entire store has made since the last time the fuel truck showed up.)
When oil prices drop, they delay dropping prices to recoup whatever they didn't collect because they didn't anticipate the oil price increase. And to insure they're not dropping their prices just as the oil price goes back up again.
The whole thing could probably be fixed if oil companies were forced to extend credit to independent gas stations so that owners weren't having to shoulder the entire financial risk.
(I don't think I'm explaining this very well. I probably shouldn't try while having a migraine, but whatever. )
ProfessorGAC
(64,425 posts)The myth of "gas prices go up but they never come back down" is persistent, despite nearly everybody seeing the exact opposite their whole life.
Another is "the greedy oil companies" (meaning refiners, not drillers) when in fact they have very little control over market price of refined product.
One need not to be an admirer of the petro industry to know what they can & cannot do on price.
I'm no admirer, but I know what to blame them for & spiking prices isn't one of those things.
LogicFirst
(571 posts)modrepub
(3,469 posts)The prelude to the last Gulf War oil prices spiked. As soon as the war started they tumbled. No reason it shouldn't happen now.
This is a temp but painful price spike. Let's hope enough of us are tired of getting kicked in the groin every time someone sneezes in an oil producing state.
Buy electric, enough of this sh-t.
pandr32
(11,447 posts)Sounds more like a dip.
LiberalLovinLug
(14,154 posts)it more like its a cycle of a "dip", then it "tumbles" upwards. Then another "dip", and another tumble up.
Like taking two steps back for every one forward.
Red Hats and others are screaming about North America turning communist. Uh....sure. Just look who controls just the oil and gas, let alone all the other aspects of our lives. Private billionaire oligarchs and their corporate executives that run them like an army. Attack and move forward (with prices) whenever there is an opportunity to use the excuse of "turmoil" in an oil producing country which causes the worlds supply to shrink a little. Then when everyone, or most, stop fighting for a bit, ease off and create a "dip" to keep customers placated. And then slowly increase by the penny upwards again back to that high price point because we had mentally already adjusted to that new normal.
Then another excuse. A new war, a strike, a boycott, a terrorist attack, a natural disaster, whatever they can use to "tumble" upwards again to set a new normal they will strive towards even if they dip down again temporarily. I am so sick of their games. This is a capitalist game, and they are not going to turn communist any time soon. As some of my relatives are sure of if Democrats remain in power.
pandr32
(11,447 posts)Thanks for that--it made me laugh.
I have seen many MAGAts interviewed and just can't imagine how anyone could be so clueless. They think we have a 'socialist' government under Biden's Administration like Hitler had. I get tired of face-palming.
BumRushDaShow
(127,312 posts)running about $103/bbl. But obviously $103 is better than #130.
https://www.marketwatch.com/investing/future/crude%20oil%20-%20electronic
cstanleytech
(26,080 posts)left untapped in various fields around the globe.
Ligyron
(7,592 posts)cstanleytech
(26,080 posts)First by building out a massive amount of mass transit for all major cities both for goods and people to use inside and between cities.
Second by making it so all oil pumped inside the US was banned from being exported.
seta1950
(932 posts)Are we going to have lower prices at the pump, I dont think so, oil companies greed, at work
Riverman100
(270 posts)restarting keystone xl! LOL
LetMyPeopleVote
(143,999 posts)ProfessorGAC
(64,425 posts)Conveniently forgetting that when demand fell for both crude & refined product, unfortunately due to the first blast of COVID, market prices for both, & retail price at the pump went down 80% in 10 days.
Also, oil prices fell since the 6th but the refined product in the distribution system was made from crude that changed custody 10-12 days prior. Today is the 14th. That's 8 days.
Additionally, my town can't be the only one that has seen an 11¢ drop in pump price since Thursday. 4¢, 4¢, 3¢ on Friday, Sunday & Monday.
Finally, oil refiners set the price for neither crude nor refined product. Now, at starting commodity bids at crude cost plus a constant multiplier (per gallon manufacturing cost plus a SMALL % margin), the refiners do make more money when crude is pricier. 10% of 100 is more than 10% of 90, of course. But, they don't set crude prices.
This meme seems written by someone with a very limited understanding of how these markets work.
Torchlight
(3,236 posts)Averages $4.35 when crude tops just over $100.00 per barrel.
Lots of markets doing their best to make tomorrow's open a banner day for their portfolios at the expense of, well... who cares?
jcgoldie
(11,584 posts)...when gas prices drop?