Will crude go under $35 a barrel?

[Toddsterpatriot]

How fortunate we are that he has let it go this low!

He tried his hardest, he really did, even stamped his feet.
Couldn't get it to go up and stay up.
Maybe if he held his breath?

 

[JakeStarkey]

How fortunate we are that he has let it go this low!

He tried his hardest, he really did, even stamped his feet.
Couldn't get it to go up and stay up.
Maybe if he held his breath?

Yet he permitted it go lower.

Thank you, President Obama.

 

[Toddsterpatriot]

How fortunate we are that he has let it go this low!

He tried his hardest, he really did, even stamped his feet.
Couldn't get it to go up and stay up.
Maybe if he held his breath?

Yet he permitted it go lower.

Thank you, President Obama.

He also let your IQ go lower.

 

[JakeStarkey]

http://www.theweek.co.uk/oil-price/60838/is-the-low-oil-price-good-news-for-the-economy

Could oil price fall to $35, $30 or even $20 a barrel in 2016?
Nov 19, 2015
Traders are expecting another sharp fall in early 2016 as a supply glut continues

 

[JakeStarkey]

WTI down to 40.29.

 

[CoachWitch]

A look at current oil price levels tells us that the supply-demand disconnect could mean oil prices will stay low into 2016, despite their recent trend higher.
Oil Price Forecast for 2016: Price to Stay Low or Rebound?

 

[Delta4Embassy]

Am surprised with ISIS stomping around (uncertainty) it's staying so low.

 

[JakeStarkey]

Even ISIS can't stop the fact that the world is awash in oil.

 

[initforme]

I hope to see the bottom drop out of oil prices. 5 bucks a barrel. In fact its about the oil companies pay us to take their gas. To heck with the slimeballs.

 

[JakeStarkey]

WTI is 41.02 and falling.

Paid 1.66 a gallon for gas today.

Thank you Mr. President for my obamagas.

 

[Jroc]

Even ISIS can't stop the fact that the world is awash in oil.

You should be kissing Saudi ass certainly not Obama fake ..but that's your natural state

 

[JakeStarkey]

Down to 40.40. Thank you, Mr. President.

 

[JakeStarkey]

40.24. I am going to go buy me some more obamagas.

 

[JakeStarkey]

Up 4.5% and 50 cents from breaking $42 a barrel. Fucking pathetic.

 

[JakeStarkey]

I think I will go buy my neighbor some obamagas.

 

[initforme]

Let's hope it drops another $41 per barrel.

 

[KissMy]

January Crude is currently trading at $37.79 but we could see oil fall to low 30's.

"Data from the state of North Dakota says the average cost per barrel in America’s top oil-producing state is only $42 — to make a 10% return for rig owners. In McKenzie County, which boasts 72 of the state’s 188 oil rigs, the average production cost is just $30, the state says. Another 27 rigs are around $29."

The trend toward production efficiency will only get more pronounced, Lux Research analyst Daniel Choi suggests. Technology startups in energy exploration have raised $7 billion in the past decade, generating now-tiny companies that will use advances in seismic data collection and steam-assisted gravity drainage to lower costs even further.

MCW Energy Group’s clean oil sands extraction plant at Asphalt Ridge, Utah, which is producing 250 barrels per day for $27-$30 per barrel—low enough to turn a profit even today. And when the company finishes building its second 5,000/bpd plant, we’re looking at costs closer to $20 per barrel.

MCW’s processing costs will also be proportionately reduced due to lower costs for propane, condensate and diesel fuel required to process feedstock.

And the plant’s location, in the heart of Utah’s Green River Formation at Asphalt Ridge adds the promise of much more gains for clean oil sands extraction. Asphalt Ridge alone is believed to hold some 1 billion barrels of recoverable oil.

Experts estimate that production using this new technology in Utah is more profitable than any other oil sands project in North America, and more profitable than today’s shale.

 

[JakeStarkey]

Oil may fall below $30 per bbl by Friday next week.

 

[waltky]

Oil goes below $35/bbl.

Oil dives below $35, lowest in 11 years, as U.S. supply swells
Wednesday, Jan. 06, 2016 - Crude oil prices plunged 6 per cent on Wednesday, diving below $35 (U.S.) per barrel for the first time since 2004 as data showing a shockingly large build-up of U.S. gasoline supplies fed fears that a global surplus was still growing.

The sell-off, the biggest one-day drop for global benchmark Brent futures since the start of September, takes losses this year to more than 8 per cent, a descent stoked by worsening Chinese economic data, the world’s No. 2 oil consumer, and a fierce row between Saudi Arabia and Iran that some say may be more bearish than bullish. The focus on Wednesday was U.S. government data showing a 10.6 million-barrel surge in gasoline supplies, the biggest build since 1993, which some traders said signaled a slow-down in demand that could prolong the global glut. The figures overshadowed a 5.1 million-barrel fall in crude stocks. “Gasoline was the sole source of strength within the complex, and that looks to have ended,” said John Kilduff, a partner at energy hedge fund Again Capital.

Brent futures fell $2.19 to settle at $34.23 a barrel. Earlier, it fell to as low as $34.13, its lowest level since the start of July 2004. U.S. crude futures fell $2.00 to settle at $33.97 a barrel, its lowest close since February 2009. Traders shrugged off rising geopolitical risks, including an apparent North Korea nuclear test. Many reckoned that the row between Saudi Arabia and Iran posed little threat to oil shipments, but made an agreement on output even less likely.

“I think we’ll see a price war soon to keep market share,” said Tariq Zahir, an analyst at Tyche Capital Advisors. “Prices will get lower and I think we’ll hit $32 again.” Following an 18-month rout, the fierce selling this year has caught some by surprise, and prompted others to pick up bearish options at lower prices. The $30 February WTI put was the second most traded strike price at 12,700 lots after $30 March puts at 21,500 lots.

The CBOE volatility index, a gauge of options premiums based on moves in the U.S. oil exchange traded fund, was up 5.5 per cent after moving sideways on Tuesday. “We’ve entered some unchartered territories, so it’s no surprise that traders are pumping volatility,” said John Saucer, vice president of research and analysis at Mobius Risk Group. Feeding into the weak market sentiment, a survey showed that China’s services sector expanded at its slowest pace in 17 months in December, following on from weak factory data on Monday.

Oil dives below $35, lowest in 11 years, as U.S. supply swells

See also:

Brent crude hits new 11-year low as China worries add to glut
Wed Jan 6, 2016 - Brent crude prices fell to fresh 11-year lows on Thursday as fresh concerns over China's economy added to huge storage overhangs, near-record production and slowing demand that have already pummeled prices.

China accelerated the devaluation of the yuan on Thursday, sending currencies across the region reeling and domestic stock markets tumbling, as investors feared the Asian giant was kicking off a virtual trade war against its competitors. Trading on its stock markets was suspended for the rest of the day. Global oil prices have crashed 70 percent since mid-2014 as near record output from major producers like the Organization of the Petroleum Exporting Countries (OPEC), Russia and North America create a ballooning overhang that has left storage tanks around the world struggling to cope with the excess oil.

At the same time, demand is slowing, especially in Asia where the biggest economy and energy consumer, China, is seeing the slowest economic growth in a generation. Global benchmark Brent crude futures LCOc1 fell to new 11-year lows of $33.09 per barrel on Thursday, undercutting a low from a day earlier, although prices edged back to $33.52 per barrel by 0213 GMT. Traders said a dispute between Saudi Arabia and Iran, which might normally be seen as posing a risk to oil supplies, may actually be bearish as it all but eliminates cooperation over production between the two OPEC members. "Neither one of them (Saudi Arabia or Iran) is going to voluntarily cede a single barrel to the other, so it arguably makes a coordinated production cut even less likely than it has been," one Middle East oil trader said.

A pedestrian stands near a sign displaying the cost of gasoline at a filling station in San Francisco, California​

In the United States, West Texas Intermediate (WTI) futures CLc1 set fresh 2009 lows of $32.77 per barrel, with prices crawling back to $33.25 by 0213 GMT. Analysts said that the huge U.S. storage overhang was the main reason for falling WTI crude. "Data suggest gasoline and distillate fuel stockpiles increased 10.6 million barrels and 6.3 million barrels, respectively, last week. The rise in gasoline and distillate inventory more than offset the fall in crude oil inventory levels by 5.09 million barrels to (still near record) 482.3 million barrels last week," ANZ bank said.

The huge storage overhang means that even if U.S. production falls this year as drillers succumb to low prices, it will take many months to work down excess supplies. With the global economy looking shaky due to China's slowdown, traders said the outlook for oil remains for cheap prices for much of this year.

Brent crude hits new 11-year low as China worries add to glut

Related:

This may be why gas prices have jumped in spite of low crude oil prices...

Fires rage at Libyan oil ports after Islamic State attacks
Thu Jan 7, 2016 - Three days of Islamic State attacks on Libya's biggest oil terminals have started fires that have spread to five massive oil storage tanks, a guards spokesman said on Wednesday.

Ali al-Hassi said the Petroleum Facilities Guards were still in control of the neighbouring ports of Es Sider and Ras Lanuf, where at least nine guards were killed and more than 40 injured near the ports' perimeters on Monday and Tuesday. Hassi said guards had recovered bodies of 30 Islamic State fighters, and had captured two military tanks and other vehicles from the militants. He also said the guards had received air support from forces loyal to the General National Congress (GNC), the government that has controlled Tripoli since its rival, which was internationally recognised, moved to Bayda in the east in 2014.

Firefighters were trying to control four fires at Es Sider and one at Ras Lanuf. Two were triggered by Islamic State shelling, and three more had caught fire, Hassi said. Mohamed al-Manfi, an oil official in eastern Libya, said each of the oil tanks was estimated to contain 420,000 to 460,000 barrels of oil. Es Sider and Ras Lanuf lie between the city of Sirte - about 200 km (125 miles) along the coast and controlled by Islamic State - and the eastern city of Benghazi. They have been closed for more than a year.

Libya is split between political factions and armed groups competing for power and for the country's oil wealth, four years after the revolt that toppled Muammar Gaddafi. Oil output has dwindled to less than one quarter of a 2011 high of 1.6 million barrels per day. Islamic State has used the security vacuum to expand its presence, though it has not taken control of oil installations in the country. The militants attacked guards at Es Sider in October, but this week's offensive was a more concerted assault on the ports.

Mustafa Sanalla, chairman of the National Oil Corporation (NOC) in Tripoli, said he hoped the violence would "lead political leaders on all sides in Libya to understand the magnitude of the threat we face". "We need to unite against this common enemy, not tomorrow or next week, but now," he said in a statement. The NOC also issued a separate statement saying it would do all it could to honour contracts and protect Libya's oil resources. The U.N. is trying to win support for a deal to form a national unity government in Libya, but the plan has faced resistance from members of the rival parliaments.

Fires rage at Libyan oil ports after Islamic State attacks

 

[JakeStarkey]

Low 33 for both WTI and Brent today at closing.

Mr. H. is wetting his pants.