Oil Prices Collapse After OPEC Keeps Oil Production Unchanged – Live Conference Feed

View Comments (19)

• http://theeconomiccollapseblog.com/archives/guess-happened-last-time-price-oil-crashed-like

  Darn, I forgot to poste this one.

• Expecting many "Thanks Obama, best President ever" comments. If this is really about fracking though, wasn't he against that?

• at the very least, tho, i suspect a trend of shale producers going bust will spark a new political circus in the media. perhaps the GOP will be needing to go on defense over propping up THEIR chosen business models.

  • Booms and busts and creative destruction are part of free enterprise; let oil finds its price equilibrium and supply won't be a problem. The challenge is to keep the government from meddling in the market.

    • "The challenge is to keep the government from meddling in the market."

      or doing their other job, buying/selling stocks with inside knowledge!

• okay, i read all of zerohedges' bonehead geektardian comments, which are the typical know-it-all responses, all with their trimmings of inside terminology and interconnected far-ranging BS. BUT, problem with that is:

  1) our country still prints money so we're always gambling in a fantasy world, not ever with actual on-the-ground realities driving data (and markets).
  2) never discount that Saudi Arabia or any other ME country might not continue to exist in a few years, at least not in their current image.
  3) if ME crisis continues to escalate, US production (at lower or higher prices, irrespective) will still be a better idea than dismantling our refineries.
  4) question is, will domestic shale producers close up shop before they're actually going to be needed to offset ME oil sale losses to the world?

  that's why you can't really depend on the mumbo-jumbo on sites like zerohedge, sometimes... a lot. no offense.

  • I agree. I have up on that site when they tried to tell the world that millions of unsold new cars rot in marshaling areas around the world just so the manufacturers can can continue to produce new models and perpetuate the myth that new vehicle sales are still strong.

    • *gave up.

• It doesn't hurt that the US dollar index has been making gains for months now. Both of their trajectories mirror each other starting back in July, the USD going up as WTI started to fall right under the same time.

  Regardless, I haven't seen WTI take a dive like this since back in '08.

• We should be restocking the strategic reserves. Remember when Otratorio tapped them?

• It is about time that OPEC gets a taste of what they have been giving us for 20 plus years.....OPEC, The Oil Producing and Extorting Countries. In Venezuela's case. I hope they go broke and dark....In addition of not having any toilet paper or food....Socialism epic fail. Hey Hugo...Smell that? Smells like failure! (I know he is dead but I couldn't resist)

  • The problem for us -- the BIG problem -- (read the whole story & comments) is that American shale oil (the fracking boom) isn't a profit at these prices. $70/bbl is just about the threshold before which the whole fracking business implodes.

    • I think that bankruptcy would be a good opportunity to nationalize the whole thing with executive orders.

    • $70/bbl is just about the threshold before which the whole fracking business implodes.

      So keep using THEIR oil until we get a REAL president in the white house.
      After that, open up the federal lands and DRILL BABY DRILL.

      Lets force them to KEEP the prices down.

      • The price of oil is set by the world market. The USA could drill all we want and if OPEC and the Russians cut production the price won't go down. It might even go up. Supply vs. Demand

        Remember is is the nature of the beast that it will cost more to produce a barrel of oil in the USA than it does in most OPEC countries and Russia.

        • cost in what? y'know what, i ain't even gonna argue with a ball of mucus like you. you're even less fun to have around than olivious. silly child. change your name to ant nuthin.

        • By law the US cannot export oil. Your assumptions would change if that law were repealed. Prices are collapsing because domestic production has skyrocketed and we are not going into the global markets at the same rate we once did.

    • Yes I did read that, at under 70 dollars a barrel there is a lot of USA oil that is not profitable to pump and that could backfire, in fact that is what the Saudi's are counting on, they are playing a game.

      I was just happy that these pricks are fighting among themselves.

      • The geopolitical stars have aligned very well. Iran is extremely vulnerable at the moment as a result of Ahmadinejad's insane spending. They need something like $140 a barrel to balance their budget. Iran is Saudi Arabia and the rest of the Gulf's archenemy (except perhaps Oman). Now is exactly the ideal time to really put the screws to them and try to fuck over Rouhani (more reasonable reformer) so Iran stays a mess for years to come.

        And that happens to align with Venezuela being in a horrific, probably eventually government-toppling economic crisis, as well as Russia being aggressive towards Western interests. And low oil prices nicely hurt both of them to go with it.

        In short, for everyone Western-aligned, there is something significant to be gained from low oil prices right now. And the other notables like China and India also benefit from low oil prices and will be happy as well.