Oil just went through the basement set in Feb...

[Baldrick]

Crude Oil
WTI (NYMEX) Price

$45.11

[Zero Point]

Anyone who says they know what's going on, is a fuckin liar imo.

[Baldrick]

Anyone who says they know what's going on, is a fuckin liar imo.

I know what is going on...

WW fucking 1, 2, 3 and supposedly 4...

Stockpile the cheap oil.....

[Zero Point]

I've been storing my used motor oil in milk bottles.
I'll be a zoillionaire I tells ye.



Seriously though, there's so many competing theories as to why oil prices have collapsed:
Lack of demand
Deflation
Saudis hate Russia
Saudis hate America
Etc etc.
Who fucking knows, but I'm sure that somewhere, an arms industry sales guy is salivating, for sure.

[Holly Golightly]

There's over-supply in oil right now. And has been for a while.

As for the price, I think the options expire this week, so we'll see... There's been a speculative bubble thanks to cheap credit and it's pushed up the price of a lot of other things too.

The thing to really watch is the US dollar. Some analysts say there's been a rush into it lately because something's coming up. I can't see China going the way it has for much longer with all the over-building ghost cities, etc.

[Zero Point]

I don't think I've ever seen a commodity get it's production doubled so quickly.

[hg nli]

Falling again tonight, so far. Down below $44.

[Baldrick]

More wag the dog as oil price "surges"

http://www.zerohedge.com/news/2015-03-26/saudi-arabia-imposes-naval-blockade-red-sea-strait-deploys-150000-troops-iran-condem

Saudi Arabia Imposes Naval Blockade On Red Sea Strait, Deploys 150,000 Troops As Iran Condemns Military Action

Just as importantly, and since as we reported first yesterday the Yemen conflict is merely a proxy war between the Saudis and Iran, we also now have reports that Iran has condemned Saudi Arabia's intervention, is demanding an immediate halt to the military action, and has warned that a war on Yemen won't be contained in one area.

[Your Mom]

I've been storing my used motor oil in milk bottles.
I'll be a zoillionaire I tells ye.



Seriously though, there's so many competing theories as to why oil prices have collapsed:
Lack of demand
Deflation
Saudis hate Russia
Saudis hate America
Etc etc.
Who fucking knows, but I'm sure that somewhere, an arms industry sales guy is salivating, for sure.

Lack of demand is definitely not one of the reasons; demand has seen exponential growth since the turn of the 20th century.

Until I had a student who was a petrochemical engineer, I didn't realise that there were different grades of oil with different hydrocarbon chain lengths with different uses. She explained that much of the crude oil is destined for the plastics sector and the longer the hydrocarbon chains the better.

Although Brasil has massive oil reserves and is now really starting to exploit them (the latest field was auctioned off to the highest bidders to exploit last year), the oil is of a relatively low grade with relatively short hydrocarbon chains.

[Sponsored content]