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Crude Falls Below $30 a Barrel for the First Time in 12 Years

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Re: Crude Falls Below $30 a Barrel for the First Time in 12 Years

#41

Post by marcosdumay »

wingsonfire wrote: post #25

Countries that export crude are having recession.. To name few Canada, Russia, Brazil, Nigeria, Venezuela, Australia (commodities not just crude), at the same countries like India who import and depend heavily on crude are having good times (relatively). So finally is it crude that runs all economies and everything else is overrated.. That scenario if true is so scary!

Just to point that Brazil is a net-importer of oil, and benefits from the low price.

Our recession has other causes.

Re: Crude Falls Below $30 a Barrel for the First Time in 12 Years

#42

Post by vermontdevil »

jevgeni wrote: post #13
_Codemonkeyism wrote: post #4

Earlier quoted context omitted.

Not an expert, China economy slowed, fracking is up.

In addition to that, sanctions lifted from Iran. Iran and Saudi Arabia are the most influential members of OPEC and they don't get along whatsoever. Meaning the Saudis and the Iranians will break rank and try to claw out more market share by ramping up production. Additionally, more in response to rtpg's comment: it is very costly and technically challenging to stop or reduce oil production, hence the price volatilit…

I also suspect Saudi Arabia is trying to rattle sabers with Iran for a variety of reasons. The recent execution of the Shia cleric had to be aimed at Iran. Plus the Yemen conflict etc.

Re: Crude Falls Below $30 a Barrel for the First Time in 12 Years

#43

Post by johnchristopher »

vincentperes wrote: post #39
wingsonfire wrote: post #25

Countries that export crude are having recession.. To name few Canada, Russia, Brazil, Nigeria, Venezuela, Australia (commodities not just crude), at the same countries like India who import and depend heavily on crude are having good times (relatively). So finally is it crude that runs all economies and everything else is overrated.. That scenario if true is so scary!

I would see it the other way around, where real and stable economies don't depend on oil export. We will see them in the coming years. An economy that mostly rely on one and unique natural resource can only suffer in the medium term.

How long is the medium term in that context ?

Re: Crude Falls Below $30 a Barrel for the First Time in 12 Years

#44

Post by iofj »

wingsonfire wrote: post #25

Countries that export crude are having recession.. To name few Canada, Russia, Brazil, Nigeria, Venezuela, Australia (commodities not just crude), at the same countries like India who import and depend heavily on crude are having good times (relatively). So finally is it crude that runs all economies and everything else is overrated.. That scenario if true is so scary!

> at the same countries like India who import and depend heavily on crude are having good times (relatively).

That's not really true. If you want to scare yourself look up what the "baltic dry index" is and what level it's at. Other transport indices (e.g. free space in harbours, train freight, ...) are all down hard.

Whatever the cause, but America and Europe have slowed down in ... pretty much everything they do. Goods transport is the clearest indication of that, but far from the only one. Somehow building in the US and Europe (and India) is down. A lot of economic activity is down in fact, the exception for now is very large debt-free services corporations.

Re: Crude Falls Below $30 a Barrel for the First Time in 12 Years

#46

Post by rubberstamp »

wingsonfire wrote: post #25

Countries that export crude are having recession.. To name few Canada, Russia, Brazil, Nigeria, Venezuela, Australia (commodities not just crude), at the same countries like India who import and depend heavily on crude are having good times (relatively). So finally is it crude that runs all economies and everything else is overrated.. That scenario if true is so scary!

Oh, people in India are not having a good time. Retail gas/diesel prices have barely changed. Retail price is still the same as when crude prices where at $99/barrel. Taxes has been raised whenever crude prices falls, so the retail price remains the same.

Re: Crude Falls Below $30 a Barrel for the First Time in 12 Years

#47

Post by mrfusion »

gaius wrote: post #35
s_kilk wrote: post #2

Anyone who knows this stuff care to explain what the consequences of this are likely to be?

The Scottish independence movement will quietly slink away, since their plans were predicated on $100/barrel!

Explain.

Re: Crude Falls Below $30 a Barrel for the First Time in 12 Years

#48

Post by 13of40 »

mrfusion wrote: post #45

Dumb question but I feel like an actual empty barrel costs more than $30. Or is the barrel not included in the price?

They typically empty all of the barrels into a tanker ship for transport, at which point they are sent back to the well heads and reused.
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