OIL could hit $ 20

[GURPS]

Oil price could hit $20 as Opec ditches quotas


Global oil prices could fall as low as $20 per barrel next year, as Opec’s decision to abandon a formal production quota exacerbates a bulging supply glut.

Speaking as the price of a barrel of Brent crude, the benchmark international contract, slipped 5.2 per cent to $40.75 in New York, the lowest since February 2009, Ole Hansen, head of commodity strategy at Saxo Bank, said it was “difficult to rule out anything”.


[rest of the article is behind a paywall]

 

[Hodr]

The oil companies already got what they wanted. From the mid 80s until the early 00s the PPB stayed between $30 and $40, with a couple of small spikes up and down.

The price for gas held steady during this entire period (from $1.00 to $1.30 in my neck of the woods). Then they took advantage of the increasing costs (from $40PB to ~$80PB) to ratchet the price to $3 or even $4/gal. They put the screws to us for a couple of years so that when they finally relaxed the price to $2.50 we would all cheer about the great low gas prices.

So now oil costs the same as it did when gas was $1-$1.5/gal, and tires were 4/$100, but the prices aren't returning. And even including inflation our transportation industry doesn't cost more (hell, much of the oil is produced domestically now so transportation is cheaper). And they aren't building new refineries so it's not like that sunk cost has suddenly increased.

It's a price gouge plain and simple.

 

[Hodr]

Maybe someday I will be able to replace my roof with affordable solar tiles and use them to charge a modestly priced electric car for 90% of my travel.

 

[Restitution]

Anyone else wonder when these falling oil/gas prices will be seen at the register? Shouldn't transportation costs for goods and services go down and thus, be reflected in the pricing?

Yeah... right!

 

[GURPS]

indeed, but Crude is not just 'refined' anymore by boiling .... and taping the tower in the right point to get Gasoline



costs have changed, Labor and Material costs are up

the Dollar is worth less

 

[LibertyBeacon]

Anyone else wonder when these falling oil/gas prices will be seen at the register? Shouldn't transportation costs for goods and services go down and thus, be reflected in the pricing?

Yeah... right!

A community college level economics class would clear things up for you right smart quick. But you will have to do some reading...

 

[PeoplesElbow]

Last I looked gas dropped about 6 cents a gallon since I filled my tank this weekend.

 

[tommyjo]

A community college level economics class would clear things up for you right smart quick. But you will have to do some reading...

After the garbage you posted this morning about the Great Depression, you REALLY shouldn't chastise someone else about their lack of economic understanding.

(The Great Depression did not last till 1945, employment and wages ROSE after the New Deal began and rose consistently till the New Deal ended at which point employment stalled---due in large part to poor fiscal and monetary policy--but wages continued to rise, if the regulations placed on the economy were so horrible and the New Deal was such a failure, why did output, wages and employment rise after their implementation?)

 

[LibertyBeacon]

After the garbage you posted this morning about the Great Depression, you REALLY shouldn't chastise someone else about their lack of economic understanding.

(The Great Depression did not last till 1945, employment and wages ROSE after the New Deal began and rose consistently till the New Deal ended at which point employment stalled---due in large part to poor fiscal and monetary policy--but wages continued to rise, if the regulations placed on the economy were so horrible and the New Deal was such a failure, why did output, wages and employment rise after their implementation?)

Thomas Joseph Felcher, the 2nd.

How many times do you need to be told to carry on about posts in the threads where they were actually posted?

Given that your economic knowledge displayed here up to this point is on par with the Great Dr. Krugman, I'm happy to take this up with you point by point, tête-à-tête, over in that thread if you wish.