oil price crashed below 30 a barrel

[ultron]

Oil price briefly falls below $30 a barrel - BBC News

 

[Talwar e Pakistan]

Oil price briefly falls below $30 a barrel - BBC News

For 30 dollars I can get a barrell of oil ?!?

 

[ultron]

For 30 dollars I can get a barrell of oil ?!?

Ye but you can't refine it unless you own a refinery.

 

[Pandora]

Saudis are really hell bent on destroying oil industries of Russia and Iran. Well its good for pakistan if it stays the same for year or so.

 

[Falcon29]

Saudis are really hell bent on destroying oil industries of Russia and Iran. Well its good for pakistan if it stays the same for year or so.

I don't think it's just the Saudi's, probably US wants this too. Mostly about Russia.

 

[oprih]

RIP to saudi's oil economy.

 

[Oldman1]

Saudis are really hell bent on destroying oil industries of Russia and Iran. Well its good for pakistan if it stays the same for year or so.

Don't think so. They could have done this long time ago. Think its responding to U.S. becoming more self sufficient in producing its own oil.

 

[TruthSeeker]

Oil Prices Fall Below $30 a Barrel
Concerns over Iranian supplies and Chinese demand push U.S. crude down by 5%

Oil prices tumbled below $30 a barrel on Friday, with daily losses rivaling their biggest of the winter as flailing Chinese markets and the soon-coming increase of Iranian exports adds to concerns that the global glut will linger.

Oil has shed about a fifth of its value since the beginning of this year as the world-wide surplus that has lingered since 2014 shows few signs of abating. Dour economic signs have inflamed fears about demand in China, the world’s second-biggest oil consumer. And many are expecting Iranian oil to hit the market sooner than expected after news reports said long-standing sanctions may be nearing an end.

“With the global economy, we could be in a serious crisis…which translates into a lack of demand for energy,” said Gene McGillian, an analyst at Tradition Energy. “Emerging markets were the one bright spot in the world, and with that being removed now and no change on the (oil) supply side…that’s going to continue the overhang in the market.”

ENLARGE
The flow of crude oil is seen in a container while an oil field worker works on a drilling rig at an oil well operated by Venezuela's state oil company in April 2015. Oil prices continued their sharp decline Friday, dropping below the $30-a-barrel mark. PHOTO: CARLOS GARCIA RAWLINS/REUTERS

Light, sweet crude recently fell $1.56, or 5%, to $29.64 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell $1.37, or 4.4%, to $29.51 a barrel on ICE Futures Europe. Both set fresh intraday lows dating back 12 years.

China’s main stock benchmark entered a bear market Friday, with the Shanghai Composite Index falling 3.6% to 2900.97. The index has fallen 20% from its recent high, the definition of a bear market, reached on Dec. 22.

China consumes about 12% of world’s crude, second only to the U.S. A string of weak manufacturing data in recent months has fueled fears that an economic slowdown in the Asian giant would affect its appetite for crude. While China’s oil demand held up last year, it is starting to show signs of slowing, with demand expected to grow by about 300,000 barrels a day, versus 510,000 last year, according to Barclays.

“China has been a key pillar of demand for years and if you take that out, things aren’t looking good for crude,” said Abhishek Deshpande, chief oil analyst at Natixis.

China’s demand is so essential because supply has shown few signs of slowing around the world, and many even think it could grow because of Iran. On Friday, the U.N.’s International Atomic Energy Agency watchdog is expected to issue a report on Iran’s nuclear program which could pave the way for the lifting of the sanctions against Tehran.

“The lifting of sanctions could not have come at any worse time for the oil market, and could therefore potentially drive prices further down,” Commerzbank said in a report.

Analysts say that this is likely to lead to a surge of Iranian oil exportsand add to the already oversupplied global market. Iranian officials have said the country is looking to add about 500,000 barrels within weeks of the sanctions relief. Investment bank Tudor, Pickering, Holt & Co. said Friday that addition is more realistically likely to be around 300,000 barrels a day, but at this pace could hit the market as early as next month, about two months ahead of prior expectations.

“We suspect there is some further downside to prices,” said Daniel Hynes, analyst with ANZ Bank.

Amid the continuing weakness in oil prices, analysts have been sharply cutting their forecasts in recent weeks.

Goldman Sachs said Monday it is sticking to its call that oil prices could fall to $20 a barrel but added that it is still not the bank’s base-case forecast. The market has just exited the “survival phase” and is now entering the “inflection phase,” in which producers restructure and sell assets. Last comes the “regeneration phase of a new industry with stranded assets ultimately shuttered or optimized.” The bank sees oil entering a bull market in late 2016 as the oversupply of crude shrinks.

Gasoline futures recently fell 2.1% to $1.0463 a gallon. Diesel futures fell 3.1% to 95.09 cents a gallon.

Oil Prices Fall Below $30 a Barrel - WSJ

 

[Rajaraja Chola]

Arabs sold oil at artificially high prices costing more than 140$ once. And now divided by cold war.
All that gains draining off.

Karma is a great leveller.

 

[Kaniska]

It will go to $20....Reason...USA is getting self sufficient in Oil and China economy is not moving so fact as projected...Now Russia is in serious trouble...For Arabs..do not worry about them...US will some way or the other bail their Arabs friends out in other way..The game is not nail down Putin..Nor US's friend Arab nations..

 

[Maarkhoor]

Low oil prices not a blessing for any country it will crush many economies, no new oil related project or new oil research, all the existing projects cancelled or being shut down since oil is already bottom low, new project can't even cover their basic costs. A question how it is bad let my explain after 2 to 3 years every oilfield need new drilling and overhaul but since companies who do this closed down or move from the area can't regain working strength so soon or urgently and with in 1 year oil will ultra short from the market and jumps straight to +200usd all the big countries like Saudi instantly recover their past losses but developing countries will crush under heavy prices and then another eminent recession is on they way.

 

[Hussain Farooqui]

Saudis are really hell bent on destroying oil industries of Russia and Iran. Well its good for pakistan if it stays the same for year or so.

The situation was started up by Iran and Saudi Arabia but now the affairs have spiraled out of the their country. Now ISIS has taken control of the oil reservoirs of Iraq and are causing a drastic drop in the oil prices. The economies of both Iran and Saudi Arabia are headed towards catastrophic conditions.

 

[ali_raza]

Low oil prices not a blessing for any country it will crush many economies, no new oil related project or new oil research, all the existing projects cancelled or being shut down since oil is already bottom low, new project can't even cover their basic costs. A question how it is bad let my explain after 2 to 3 years every oilfield need new drilling and overhaul but since companies who do this closed down or move from the area can't regain working strength so soon or urgently and with in 1 year oil will ultra short from the market and jumps straight to +200usd all the big countries like Saudi instantly recover their past losses but developing countries will crush under heavy prices and then another eminent recession is on they way.

exactly true

 

[TopCat]

Low oil prices not a blessing for any country it will crush many economies, no new oil related project or new oil research, all the existing projects cancelled or being shut down since oil is already bottom low, new project can't even cover their basic costs. A question how it is bad let my explain after 2 to 3 years every oilfield need new drilling and overhaul but since companies who do this closed down or move from the area can't regain working strength so soon or urgently and with in 1 year oil will ultra short from the market and jumps straight to +200usd all the big countries like Saudi instantly recover their past losses but developing countries will crush under heavy prices and then another eminent recession is on they way.

Demand for oil is going down and only the high cost rigs will get shut. Cheap oil will keep on flooding specially from Russia.

 

[Hamartia Antidote]

Oil Prices Approach $26 After Bearish IEA Report | OilPrice.com