$25/barrel oil, Gulf Oil CEO says $1/gal @ Pump

[Metro752]

http://www.bloomberg.com/apps/news?pid=20601087&sid=aIUEV3pCOJeo&refer=worldwide


U.S. Stocks Drop, Led by GM; Exxon Falls on $25 Crude Forecast
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By Elizabeth Stanton and Jeff Kearns
Dec. 4 (Bloomberg) -- U.S. stocks fell for the first time in three days, pushed down by concern General Motors Corp. may file for bankruptcy and a plunge in energy shares following Merrill Lynch & Co.’s prediction that oil will hit $25 a barrel.
GM lost 16 percent after a person familiar with the matter said the largest U.S. automaker is exploring a reorganization with workers, creditors and lenders. Southwestern Energy Co., EOG Resources Inc. and Exxon Mobil Corp. .......

 

[brokeflyer]

hope so.....then SWA would be hurting and raise prices.....so would everyone else....then the airlines MAY start making money and everyone would be happy

 

[J and E's Daddy]

And airlines will still cry they are lsing money and ask for paycuts, and like fools, we'll give them the paycuts necessary to pack their golden parachutes.

 

[SpauldingSmails]

Analysts... hmmmph. Have they ever gotten it right?

Although I'd certainly be happy with $25/bbl oil prices, these are the same type of folks that predicted $170+/bbl oil.

 

[buxflyr]

Remember when gas was .88 cents a gallon? Only 10 years ago...

 

[BoilerUP]

...that's what demand destruction (and a rise in value of the US dollar) due to a global recession will get you.

In other unrelated news, a tall cup of Starbucks is again more expensive than a gallon of unleaded gasoline.

 

[CopilotDoug]

hope so.....then SWA would be hurting and raise prices.....so would everyone else....then the airlines MAY start making money and everyone would be happy

With gas that cheap, and raising airfares...my bet would be a staggering increase in highway traffic

 

[flyboyzz1]

Opec won't stand for this. They are pissed that it is not at 75bbl. They are having a meeting in a week or so to discus a third massive reduction in production. Some experts have said a cut of 3 million bbls a day will drive that price up. Funny thing is most of the OPEC countries can't cut production that much because of government budgeting. It's BS we have to deal with a cartel to run our country. Any new drilling or increased productions from non-opec countries will do nothing b/c opec will just cut that same amount. Look at the histroy, they have been doing that for some time.

It is great filling up my car for $25 again!

 

[DObyDEFAULT]

bugala bugal bugala

 

[WalterSobchak]

With gas that cheap, and raising airfares...my bet would be a staggering increase in highway traffic

As long as those airfares will sustain even $0.01 in profit...I welcome the suckers stuck in highway traffic. That would equal more seats for me when I want to fly somewhere. God knows we're losing every other perk...maybe non-revving will get easier.

Wishful thinking...

 

[regionalcap]

As long as those airfares will sustain even $0.01 in profit...I welcome the suckers stuck in highway traffic. That would equal more seats for me when I want to fly somewhere. God knows we're losing every other perk...maybe non-revving will get easier.

Wishful thinking...

I know what you mean. It used to be only a question of whether or not that you could get a first class seat.

 

[BOHICAgain]

great now if we can only get the old guys to leave at 60

 

[ex j-41]

OPEC wants you to go out and buy your big SUV today so you will be stumped next time oil goes to $140/barrel.
People have short memories.

 

[wmuflyguy]

Opec won't stand for this. They are pissed that it is not at 75bbl. They are having a meeting in a week or so to discus a third massive reduction in production. Some experts have said a cut of 3 million bbls a day will drive that price up. Funny thing is most of the OPEC countries can't cut production that much because of government budgeting. It's BS we have to deal with a cartel to run our country. Any new drilling or increased productions from non-opec countries will do nothing b/c opec will just cut that same amount. Look at the histroy, they have been doing that for some time.

It is great filling up my car for $25 again!

If they do drive up prices in this current market they will help deepen the recession and destroy demand for their product further. The OPEC countries are already feeling the pain as they planned on selling 90 dollar a barrel oil in their national budgets. They need to be careful or else they could send themselves back to the stone age.

 

[Browntothebone]

$25 barrel oil means that RJs will be cost competitive again. Cheap oil = less jobs at the majors.

 

[Fozzy]

They need to be careful or else they could send themselves back to the stone age.

I didn't know they ever left the stone age.

 

[acarpe3448]

$25 barrel oil means that RJs will be cost competitive again. Cheap oil = less jobs at the majors.

Cheap Oil + Comair Out of Business = A great Year

 

[COOPERVANE]

I'm going to fill my pool with 10000 gal of gas at $1.00/Gal.........a Plastic solar blanket and I'm in business.......Yeah it HAS to work

 

[Tarzan]

Opec won't stand for this. They are pissed that it is not at 75bbl. They are having a meeting in a week or so to discus a third massive reduction in production. Some experts have said a cut of 3 million bbls a day will drive that price up. Funny thing is most of the OPEC countries can't cut production that much because of government budgeting. It's BS we have to deal with a cartel to run our country. Any new drilling or increased productions from non-opec countries will do nothing b/c opec will just cut that same amount. Look at the histroy, they have been doing that for some time.

It is great filling up my car for $25 again!

One thing you have to understand about OPEC is that they need to money from the oil. They talk big when faced with cameras or in the presence of their other cartel members. However, if one thinks back to when the prices started their slide, OPEC announced a 1.5M barrel cut, prices slide the next day by a considerable amount. Point is, OPEC members cheat. They will produce oil because they need to revenue. As you pointed out, these countries hav e enacted programs that require these prices but they can't cut because they need to all the money they can realize here.

We missed the boat on the American companies exploring for more oil. Canada has scaled back their sand oil production. All these have been shelved because the high costs will not be repaid because oil has fallen so much.

In the end, I don't believe we will see $25 a barrel. $35 is not out of the question. We will see a gallon of gas bottoming out around $1.25. On another note, remember all the doom and gloomers saying we will never see this again?

 

[flyboyzz1]

I agree with you. I do think that this decrease in oil is temporary and is directly linked to the economy. As soon as that goes up so will our oil.