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erronis

(20,966 posts)

12. You only forgot to add the high-stake traders that can influence the price.

Mon Dec 7, 2015, 07:17 PM

Dec 2015

There are much bigger games played here than spot prices based on production or capacity. There are major players (multinational, large nationals) that are looking at 2-10 year prices and trends within the developed and developing countries.

OPEC was just learning how to walk when the 70's crisis was created. At that point the major powers didn't really know how to force the issues - how to thread the fine line between gluttony and scarcity.

In the 40+ years, there has been a lot of tweaking and understanding of market reactions. The ability to model producer and consumer behaviors has improved(?) tremendously.

While we all get comfortable with home heating, automotive in the $1-$2/gal range, don't expect it to last. This is a tickler for a future "gotcha".

IMHO.

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Oil Tumbles to Six-Year Low as OPEC Abandons Production Target [View all] Purveyor Dec 2015 OP

Maybe this will kill the fracking business. philosslayer Dec 2015 #1

It is doing just that but will it set in motion a recession? Purveyor Dec 2015 #2

Are you kidding? philosslayer Dec 2015 #3

Until OPEC decides to stop glutting the market - then what? jonno99 Dec 2015 #5

That's the thing..... Plucketeer Dec 2015 #10

Yep. Even now though one of my boys is looking to trade in his "crew-cab" for a vehicle jonno99 Dec 2015 #11

I still drive my '57 Studebaker truck Plucketeer Dec 2015 #19

Dont count on it unless there is a major change from relying on oil for most of the world within cstanleytech Dec 2015 #16

I'd like to think frakking killed OPEC! yallerdawg Dec 2015 #4

+1 yep. jonno99 Dec 2015 #7

actually, it was the other way around... Javaman Dec 2015 #22

Fracking and the increasing viablity of renewables put pressure on OPEC. OPEC responds by trying pampango Dec 2015 #23

Unfortunately, this isn't good news FLPanhandle Dec 2015 #6

Correct MosheFeingold Dec 2015 #9

You only forgot to add the high-stake traders that can influence the price. erronis Dec 2015 #12

But see, high price oil is an incentive for more oil! yallerdawg Dec 2015 #13

+1 can't argue with that! nt jonno99 Dec 2015 #15

Well, the Saudis owe us more than that! But it's a start. Elmer S. E. Dump Dec 2015 #8

Watch your own back. The Saudis have nothing but disdain for you (and me.) erronis Dec 2015 #14

I hear you, bro. Elmer S. E. Dump Dec 2015 #18

Glad to see the lower prices but BumRushDaShow Dec 2015 #17

War in the Oil Patch boosts PPB. Octafish Dec 2015 #20

If this keeps up Turbineguy Dec 2015 #21

Low price oil is leading to higher auto insurance prices. Xolodno Dec 2015 #24