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The price of oil - Christmas comes early!


Fragile Bird

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Earlier this year friends of mine and I were sadly bemoaning the fact that we would never see oil below $1.00 a litre ever again. And those friends were all my age, and we have lived through oil dropping from $80.00 a barrel to $10.00 a barrel, $140 to $30, and other similar falls in the past. But we thought it would be different this time.

Wrong.

Oil can be found for $.959 all over Toronto ($1.009 at more expensive full service stations). And it will fall some more. That works out as only $4.22 US for a US gallon!

That means instead of filling up for almost $70.00, I can fill up my Toyota Avalon for just over $40.00.

$30 a week over 52 weeks = real money. :D

What is the price of gasoline doing in your neighbourhood, and what does it do to your budget?

Price calculator http://www.mississauga4sale.com/Gasoline-Conversion-Calculator-litres-gallons-us.htm

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Actually, I think this time around the targets are ISIS, since they have been selling oil into the market, and Russia.

ETA: At first everyone said North America was the target, but I don't think so. For one thing, there is a lot of Arab investment in world markets and they are not only taking in less money, they are being hit in their portfolios. But the idea of the caliphate is scarier.

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This is tactical by OPEC to try to put frackers and tar sands out of business. Once they are hurt enough supplies will decline and prices will rise.

Won't work.

The Tar Sands, at the very least, will just keep on chugging because they'd lose more money stopping and restarting the operation then they do by just polluting and fouling their way through a few unprofitable years.

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Won't work.

The Tar Sands, at the very least, will just keep on chugging because they'd lose more money stopping and restarting the operation then they do by just polluting and fouling their way through a few unprofitable years.

Nonetheless, quite a few small to midsize players will face massive debts and bankruptcy, then they'll have to sell (or face hostile takeover) their acreages to the larger international players. The end-game is still to crush the rise of American domestic production.

Actually, I think this time around the targets are ISIS, since they have been selling oil into the market, and Russia.

ETA: At first everyone said North America was the target, but I don't think so. For one thing, there is a lot of Arab investment in world markets and they are not only taking in less money, they are being hit in their portfolios. But the idea of the caliphate is scarier.

ISIS black-market sale of oil is a few hundred mils annually if that. A paltry sum to the billions OPEC are getting hit with right now. But like I said earlier, it's a small and temporary price to pay to break the American frakkers and capture the producing acreages in a few years.

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Nonetheless, quite a few small to midsize players will face massive debts and bankruptcy, then they'll have to sell (or face hostile takeover) their acreages to the larger international players. The end-game is still to crush the rise of American domestic production.

It won't work. Not without prices falling to a level that no one except maybe the Saudis can withstand for very long. They succeed in stopping further expansion for a time, but most of the wells aren't going to start shut down unless prices fall to around $30/barrel and stay there.

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It won't work. Not without prices falling to a level that no one except maybe the Saudis can withstand for very long. They succeed in stopping further expansion for a time, but most of the wells aren't going to start shut down unless prices fall to around $30/barrel and stay there.

The wells won't shut down, but many of the small the mid-size domestic producers (such as sandridge or chesapeake et al.) are swimming in massive debts (ironically to finance the great frakking boom) and will be forced to liquidate their holdings to fight off bankruptcy.

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Around SE Michigan it's about $2.49/gal. In northern Ohio I've seen it for about $2.29.

If I were a conspiracy theorist, which I'm not, I'd say that the real target is Russia and Putin. Apparently, this is really hitting them hard - so hard that the shine is dulling on Putin's halo for the Russian people. or so I've heard.

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