What was the reason for 2009 BRENT oil prices?

Discussion in 'History' started by youreyes, Nov 13, 2014.

  1. youreyes amorphous ocean Valued Senior Member

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    I ask this because the current "BRENT" oil price seems to be dropping under $80 per barrel, this inevitably leads to a conclusion that the possible lowest price per barrel in the future might drop to $40 per barrel.

    What happened in 2009 exactly that caused such low oil prices and what reversed this process?
     
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  3. Captain Kremmen All aboard, me Hearties! Valued Senior Member

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    The worldwide economic crisis that began in 2008.
    The current fall is being caused by the US development of shale oil and gas.
    If it gets to the point where the US no longer needs its "friend" Saudi Arabia, the corrupt leaders of that country should worry.
     
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  5. sculptor Valued Senior Member

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    I would have guessed that the drop was largely due to the speculators unwinding their long oil positions.
    I say this because in late 2008, I was getting many cold calls trying to sell me oil futures.
    I've found that cold calls of this sort are counter indicators. The same was true at the top of the gold market.
     
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  7. joepistole Deacon Blues Valued Senior Member

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    As the captain pointed out, there is a glut of oil on the oil markets brought about by increased US oil production and the decision by Arab states to compete for market share rather than on price. OPEC meets in about a week and a half. If OPEC doesn't cut production, oil prices could get much lower in the days, weeks, months and years to come. Russia needs $100/per barrel oil. US shale producers need $60/barrel. Saudi's need $30/barrel. There is a lot of downside potential for oil prices and not much upside potential. Increased US oil production is a sea change event for the oil industry.
     
  8. youreyes amorphous ocean Valued Senior Member

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    Could staging a revolution in Libya and halting the oil production in that country through funded protests which would halt the operation of the major oil suppliers in the country, kick the oil price up?
     
  9. joepistole Deacon Blues Valued Senior Member

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    Libya doesn't produce that much oil and the oil it produces is exported mostly to Europe. And there is no evidence that any foreign power instigated the revolution which deposed Muammar Gaddafi.
     
  10. youreyes amorphous ocean Valued Senior Member

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    sure no evidence, it were the tooth fairies.
     
  11. joepistole Deacon Blues Valued Senior Member

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    Do a little research, find out for yourself.
     
  12. youreyes amorphous ocean Valued Senior Member

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    US and NATO forces did it, with help of an inside revolution as well. And than came Egypt and than Syria...same strategy by US. same old excuses of "democracy". blah blah
     
  13. joepistole Deacon Blues Valued Senior Member

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    The revolution, The Arab Spring, was not a Western initiated scheme.
     
  14. youreyes amorphous ocean Valued Senior Member

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    really? who's was it than?
     
  15. joepistole Deacon Blues Valued Senior Member

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    You have any evidence to back up your claims?
     
  16. Captain Kremmen All aboard, me Hearties! Valued Senior Member

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    Libya is so disorganised that a revolution would be difficult.
     
  17. youreyes amorphous ocean Valued Senior Member

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    Kaddafi got killed, the oil resources went to the West. revolution done.

    US happily called it a "liberation"
    Britain and France joined in too.

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    Now Europe is sucking the oil out from Libya and calling it "liberty"

    Nice job well done.
     
    Last edited: Nov 14, 2014
  18. joepistole Deacon Blues Valued Senior Member

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    Actually, that is a little disingenuous or ignorant. Libyan oil belonged to the Libbyan state before the revolution and it remained owned by the state after the revolution.
     

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