OPEC concerned by oil drop, ready to talk to other producers.

[Ricky8443]

Already movement to push prices upwards.

(broken link removed to http://www.cnbc.com/2015/08/31/opec-concerned-by-oil-drop-ready-to-talk-to-other-producers.html)

 

[Highbeam]

I know this is political and the whole thread will soon be closed but the whole price fixing, monopoly, collusion thing really ticks me off.

 

[begreen]

With big energy following the money can be hard in today's world. However, bankruptcy court sometimes shows all the hidden bedfellows:
(broken link removed to https://firstlook.org/theintercept/2015/08/25/coal-giant-bankruptcy-reveals-secret-ties-republican-dark-money-groups/)

 

[gzecc]

With big energy following the money can be hard in today's world. However, bankruptcy court sometimes shows all the hidden bedfellows:
(broken link removed to https://firstlook.org/theintercept/2015/08/25/coal-giant-bankruptcy-reveals-secret-ties-republican-dark-money-groups/)

This article would make you believe there are only GOP dark money groups. Will there ever be a time when the sheeple will not be lead by the nose?

 

[begreen]

Big energy is an equal opportunity briber contributor.

 

[DougA]

"In 2014 OPEC comprised twelve members: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela."

A fine group of trustworthy thieves countries.

I just betcha USA & Canada are leading the fight for lower prices.

Alberta just released their forecast for a $6 Billion deficit in the coming year and as of this morning, Canada is officially in a RECESSION. Oh joy! The good news is that we have an election in Oct. and we will probably vote in a Socialist gov't.

 

[Wildo]

I don't think discussions on what the oil industry does should automatically be deemed political and locked. We all know they are a bunch of crooks, but the direction the market takes will have major repercussions on us even if we may not recognize all aspects of it immediately.

Here in Maine wood was becoming scarce and expensive due to everyone burning pellets and biomass. The wood scroungers were starving. Now with oil low people had an easier time finding wood this summer because every bit wasn't being chipped for pellets and biomass.

Our country is still in a recession/depression no matter what anyone says and cheap oil helps big time. If they jump the prices now they will be hurting everyone including themselves BIG-TIME. I know many people who are just getting their heads above water after seven years of hard times.


Hopefully enough pressure is applied that this doesn't happen anytime soon. Cheap oil we get now will get them rich next year instead of next week.

 

[hossthehermit]

DILDOS?????????????????? oh, Wildo ....... never mind ........................

 

[branchburner]

With China slowing down, I expect the lower prices and demand for ALL commodities will continue for some time.

From what I have read, the Saudis have long been pressuring other OPEC members to go along with them and keep production and supply up, keeping prices low so that high-cost North American producers will be forced to go bankrupt, or at least unprofitable, and cut back producing. THEN the Saudis will curtail their own production and raise prices as needed.

But it's a longer process than they bargained for:
http://www.businessinsider.com/r-revamped-us-oil-hedges-may-test-opecs-patience-2015-1

And just think what higher interest rates would do to companies that are now running on borrowed money rather than on profits.

 

[Swedishchef]

Here is my take on things: we will pay through the nose no matter what type of energy we use. Some States are implementing a tax on electricity to recoup the losses from less gas sales due to electric cars.If EVERY single person had an electric car, gas/oil would be really cheap. There would be a lot less demand.

I always compare price gouging to computer viruses: it goes with the mass.

Andrew

 

[Ashful]

With big energy following the money can be hard in today's world. However, bankruptcy court sometimes shows all the hidden bedfellows:
(broken link removed to https://firstlook.org/theintercept/2015/08/25/coal-giant-bankruptcy-reveals-secret-ties-republican-dark-money-groups/)

So what, if anything, does that obviously biased article have to do with OPECs concern over dropping oil prices? Seems you're so anxious to find a villain, you forgot what you're vilifying them for, again.

 

[begreen]

The thread started derailing on its own and thus the response. You are correct, I did follow and get off topic.

I know this is political and the whole thread will soon be closed but the whole price fixing, monopoly, collusion thing really ticks me off.

 

[stoveguy2esw]

I was kinda thinking about this on my way in to work this morning. the big jump in oil prices had several effects, from driving folks to more efficient cars to renewables for heat, but in the Macro, it opened up countries that could not do a lot in oil drilling and make money at it as well as making fracking and horizontal drilling cost effective enough with the higher per barrel prices to be worth doing. note Venezuela's economy really took off (and Hugo stayed in power with his subsidized gas) now these methods of production are not money makers at the per barrel price and aren't doing as well (Venezuela's economy is in really bad shape now and probabaly largely due to this.
note also that many of the oil rich countries took a loss in overall income due to these more expensive but marketable methods putting a lot of oil out there thus reducing the shares that these countries had been getting. I wonder how much of the discord over there has to do with this reduction in cashflow.

 

[begreen]

Indeed the low price of oil has affected non-OPEC countries too. Canada and Russia are in recession.
http://www.bloomberg.com/news/artic...longest-recession-in-decades-with-oil-near-50
http://www.businessinsider.com/canada-in-recession-2015-9

 

[Swedishchef]

We're in an election campaign at the moment..those in power are saying it's a "technical recession" or a "down time". The opposition is simply saying a recession. lol.

I can promise that lots of jobs in alberta have been lost and companies are holding back at the moment...

Andrew

 

[stoveguy2esw]

We're in an election campaign at the moment..those in power are saying it's a "technical recession" or a "down time". The opposition is simply saying a recession. lol.

I can promise that lots of jobs in alberta have been lost and companies are holding back at the moment...

Andrew

well, election aside (I really didn't want my post to sound political wasn't meant to) I really don't have a direct "dog in the fight" other than lower oil prices do tend to affect stove sales a bit just as high oil prices do.

seems the more time passes the more everything seems to be in a boom or bust cycle. these fluctuations have to have an effect on macrobehavior

 

[begreen]

Lot's of folks in the pellet forum are filling the tank and waking up their oil burners this season.

 

[stoveguy2esw]

Lot's of folks in the pellet forum are filling the tank and waking up their oil burners this season.

its not surprising, with the drop in prices many who are not seeing as large a savings will do that for the ease of oil. what might be a byproduct later in season (dunno for sure) is that there could be a larger stock of pellets abound as demand has fallen. this MIGHT lower pellet costs some as well for those who stay with burning biomass.

bear in mind I aint Warren Buffet so my musing above is PURE speculation, I do not have any "insider info" on this, just my feelings based on what it has looked like in past seasons with somewhat similar situations

 

[begreen]

Pellet prices so far seem to remain high on the east coast. I think this is due to exports and the demand in Europe keeping prices high.

 

[stoveguy2esw]

its early yet, if there is any realized savings on pellets due to higher stock it will be later in the season. right now prices will be as high as they should be for the season

 

[Ash]

its early yet, if there is any realized savings on pellets due to higher stock it will be later in the season. right now prices will be as high as they should be for the season

Looks like it's happening sooner here in the Midwest. Menard's just dropped their price on pellets 50 cents a bag.

 

[Swedishchef]

What scares me is that right now in Canada, without our barrel of oil around $45, we are still paying $1.16/litre. However, 6 years ago when oil was $150/barrel we were paying $1.50 a litre. I think lots of tandem bikes will be sold for bike pooling once crude hits $100 again...I can't begin to imagine what the price of our gas will be

Andrew

 

[branchburner]

seems the more time passes the more everything seems to be in a boom or bust cycle.

Well, oil was pretty stable for many decades, gently declining in price for a good half-century up until the early 1970s... which also happens to be when the US stopped redeeming dollars for gold, a fact not unrelated.

https://upload.wikimedia.org/wikipe...1861.svg/2000px-Oil_Prices_Since_1861.svg.png

 

[branchburner]

I can promise that lots of jobs in alberta have been lost and companies are holding back at the moment...

And speaking of boom and bust, looks like the office space boom there is going bust in a big way:

(broken link removed to http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/news/property-post/half-empty-office-buildings-on-the-rise-in-calgary-edmonton-amid-oil-price-plunge&pubdate=2015-09-03)

 

[Swedishchef]

And speaking of boom and bust, looks like the office space boom there is going bust in a big way:

(broken link removed to http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/news/property-post/half-empty-office-buildings-on-the-rise-in-calgary-edmonton-amid-oil-price-plunge&pubdate=2015-09-03)

Oh for sure...there's a huge ripple effect. In New Brunswick (Eastern Canada) there's a drop of about 80% of charter flights that were flying to Alberta. Syncrude and other large oil companies would charter flights for employees in the East. It isn't so any more.