Oil Plunges Most Since 2008 on Unraveling Saudi-Russia Alliance

Oil Plunges Most Since 2008 on Unraveling Saudi-Russia Alliance
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Is this a buy when there is blood on the street opportunity? XOM and CVX were already yielding around 5% before any stock price decreases when the market opens on Monday.

(Bloomberg) – Oil in London plunged the most since 2008 on signs of a breakdown in the global producer alliance that helped engineer crude’s recovery from the worst crash in a generation.

Futures plummeted more than 9% in London as talks between members of the OPEC+ group collapsed in Vienna. Producers in the alliance are free to pump at will starting next month, after Russia refused to bend to Saudi Arabia’s wish for output cuts aimed at offsetting the coronavirus crisis’s impact on demand.

article from Bloomberg news

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Sa’bout time! I paid $2.24/gallon for regular unleaded last week. That is lowest it has been in a while.

Time, now or soon, to top off those heating oil tanks? Gotta make ready for next winter.

These wonderful oil price plunges usually don’t last very long.

Dang we’re getting robbed here. Its still ~$3 on the West coast Over $2.8 in my neighborhood.

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It really depends how far you are from where it’s produced. Was $1.97 (regular unleaded) last weekend at my local Sam’s Club. It’s back up to $2.11 now but good idea for those on heating oil to refill tanks.

There’s $0.65-$0.70 /G in taxes in CA (not sure about state vs federal).

Massive bankruptcies and layoffs will be coming to the oil sector.

Yeah state tax differences are part of it for sure. But we’re only 37c here in Oregon. Most states are in the 20-30 range.

Its $2.55 avg in Idaho vs $2.97 in OR and the tax in ID is only 3c less than ours

https://gasprices.aaa.com/state-gas-price-averages/

I tried to nibble at XOM with a 41.00 limit that didn’t get filled. :frowning: I may try again tomorrow depending on market sentiment.

Massive BK in the oil industries ?
Who cares. Do we cry when they make tremendous profits ?

No.

Full disclosure: I’m not involved with oil. Zero involvement.

However, I’m closely involved with natural gas (NG) as a royalty owner. NG is something that has been on my radar screen for at least the past twelve years, actually longer than that. We (myself and people in similar situations) have concern where there is overlap. That is, a company doing both oil and NG might be taking a hit on the oil side which could whip around and impact us NG mugglers.

For anyone unfamiliar, you oftentimes hear the phrase “oil and NG”. Well, in some places you find lots of NG but no oil in paying quantities and no NGLs (natural gas liquids). Such NG as this is referred to as “dry gas”. It’s great stuff and is close to being salable just as it comes from the ground. The shale which contains this gas is roughly a mile down, plus or minus, through solid rock. There are no oil wells where I live, neither conventional or unconventional. But there are plenty or dry NG wells. People here hope this attack on our oil drillers does not end up with us as collateral damage.

Should have been more careful with my words. Ive been on a few threads where oil workers are pissy for their own personal situation.

Expecting us to pay more for gas so it doesnt affect their income.

As a national defense / economy issue i get it. Tho low gas prices is good for the economy no ?

A lot of my friends work in the sector but the up and down of oil price isn’t new. It will recover assuming the whole economy doesn’t go down the crapper. Longer term worry is that other source of energy will continue to eat away at oil/gas.

Millions of people care.

Oil and gas were creating millions of 6 figure, high quality, high paying jobs over the past 12 years.

If those go away, then potentially millions of people will be transitioning into low pay, unskilled, low quality, and part time jobs.

Shale fields are not going to recover except for a small percentage of the most productive wells. Shale was a bubble that was cash flow negative before the crisis started. It required constant debt to be pumped into the system to keep it operating.

It was going to collapse at $50 a barrel. Now that oil prices are so low it is the nail in the coffin.

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