Oil Prices Continuing Down Trend

Oil prices appear nearly back to where they've been for a long time (outside of the 2020 oil business disaster).

Plus, our EIA is predicting slowly decreasing oil prices through 2024.

This is due to world market issues - more Russian oil than predicted, slowing economy in China. Upward pressures have been OPEC+ deciding to reduce volume to bolster prices, plus production problems in Iraq and other places.



https://www.eia.gov/todayinenergy/detail.php?id=56560

 

The Saudis want higher prices

Saudi Arabia is cutting oil production in move that could push U.S. gas prices higher
FRANKFURT, Germany (AP) — Saudi Arabia will reduce how much oil it sends to the global economy, taking a unilateral step to prop up the sagging price of crude after two previous cuts to supply by major producing countries in the OPEC+ alliance failed to push oil higher.

https://www.msn.com/en-us/money/oth...-could-push-u-s-gas-prices-higher/ar-AA1c7xbb

 

Oh you mean oil is controlled by other factors other than Biden?

 

That’s where Brandon is supposed to negotiate and use diplomacy to control those elements. He has failed this far.

 

Yes. I mentioned that, but you have more full information here - thanks.

EIA says this is a full OPEC+ move. Fortunately, there are pressures in the other direction, too.

In the longer term, we can note that 70% of our consumption of oil is for transportation.

Any amount of movement toward electricity in transportation will reduce our oil consumption, which is another downward price pressure on oil. Plus, it reduces the overall impact of OPEC+ decision making that is constantly affecting us.

 

Trump failed to negotiate with the Saudis on oil price, too.

Of course, Trump's disaster was the oil price crash, and he was asking the Saudis to produce LESS in order to raise prices.

So, we've failed to negotiate volumes (thus prices) either up or down.

The idea that the USA can negotiate with some other country or countries in order to change the price of oil is proven nonsense, at least in the 2000's.

 

This is entirely on Brandon. Trump had gas prices reasonable. Brandon had failed on every front, here as well.

 

That's incorrect. When the price of oil tanked because of a price war between Russia and OPEC, putting American oil companies out of business as a result...trump came in and told both of them to knock it off.

And they listened.

Having low oil prices are great! Having it be so low as to put our oil companies out of business? That's not so great. I shouldn't have to explain this to you.

 

Perhaps he should bury the murder of a US journalist in return like the previous administration.

 

That's not what the EIA history shows.

And, it's well known that the Saudis shut him out.

 

Yet he did a great job keeping it reasonably priced. Something random failed to do.

 

LOL - you didn't explain anything.

Plus, catastrophically low oil prices were absolutely going to end, because oil producers in countries that have state owned production can't afford to give away their product, as that's how they fund their country.

 

they lost a lot of money during covid as people were not using as much oil.... they raised prices to make up for it, now prices coming down

they will now cut production some to keep prices stable and raise them some, oil prices will always go up and down

 

That would seem to be good news overall, but it's no longer translating to lower US Gas prices...

Still up .45 cents/gallon nationally in 2023...

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EMM_EPMR_PTE_NUS_

 

When Trump was POTUS, the non-integrated were carrying forward losses.

 

prices of gas always go up faster when prices of oil rise, then they go down when prices of oil decline... yep, we noticed that too

 

It would be worth investigating how gas prices are set.

Today we seem them all pretty much change in lock step and it doesn't seem like they follow oil prices.

There are other components of gasoline, of course.

Still, this doesn't really look like one would expect if there were free market competition.

 

Would love to see it at my Costco. Reduced down to 3.80 and has been steadily climbing to 4.65. Washington State

 

The reality is “Brandon” has done everything he could to raise oil prices. He did PR stunts, like dipping into the Strategic Reserve, which is potentially dangerous, to show that “he cared.” He doesn’t.

The other comment that the shift to EVs will lower petroleum demand. Most of the electricity that powers EVs will continue to be generated by fossil fuels. That is not going change for a long time. Even “Brandon” has admitted that.

 

With EVs becoming more and more prevalent each new day, the usage of gas is going to drop until it becomes just a cottage industry. I believe these oil companies see the writing on the wall and will not reduce prices anymore. To think these oil companies are going to work extra hard to find and extract more oil just so they can lower prices is about as stupid a concept as it gets.

 

I completely agree with you which is why I support a large push to install solar on every new home where it makes sense to do so. Instead of subsidizing gas companies that have shown they will price gouge Americans and sell to the highest bidder we need to shift those subsidies to American made photovoltaic cells installed with American labor to further reduce our reliance on oil.

Great thoughts @JohnHamilton, I agree completely

 

"Nearly back?" 2021 at $40 vs over $60 now? That's 50% higher.

 

Yes, that date is still during the recovery from the disastrously low price of a year earlier.

Surely the main point here is that the disastrously low and painful highs are not something that resulted from US action.

You can look at what EIA says are the factors for the lowering trend in oil prices to see that what THEY see as important factors in the coming months.

 

We can agree about fossil fuel use, but not about solar. It is still quite expensive, and I've heard about studies which claim that the payback period on them is still too long. By the time they have recovered their cost, they have lost much of their effectiveness. There is also the question of disposing of them once they are useless. I have heard that only the French have an effective system for doing that.

The climate activists only look at the surface. They don't consider the problems with disposing of their devices, like lithium batteries, on the environment. They don't consider the political and economic ramifications from having the Chinese control the supply of lithium. Biden has limited our ability to search for those materials here, yet his administration is pushing EVs like there is no tomorrow.

The left thinks they have a corner on long term planning. They don’t. If they are going to force compliance with all the green energy mandates that on their agenda, they need to think about the whole system. They need to have the electric grid in place to handle it, and they need to have the ability to generate all of that electricity.

They can’t act like California and brag about how they are getting rid of all the fossil fuel generating plants in their state, and then buy the energy they need from neighboring states. That’s just pulling the wool over the eyes of their green energy admirers.

 

Nonsense.

And you come to that conclusion, how?

We'll see in a couple of months.