Why oil price drops?

Discussion in 'Business & Economics' started by Saint, Nov 25, 2018.

  1. Saint Valued Senior Member

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    Why did oil price drop recently?
     
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  3. Seattle Valued Senior Member

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    Why not?
     
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  5. sculptor Valued Senior Member

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    fracking
    (cheaper than deep sea drilling)

    and
    the dollar is rising
    (maybe? because the fed is tightening?)
     
    Last edited: Nov 25, 2018
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  7. billvon Valued Senior Member

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    More supply (Arabs selling more, some tight oil supplies being opened up)

    Less demand (fuel efficiency of cars, trains, ships and aircraft rising since the 1970's, and China is seeing a slowdown in demand)

    Enjoy it while you can; prices will be rising again soon. The Arabs can't keep their output at this level for long.
     
  8. sculptor Valued Senior Member

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    and
    hedge funds have been divesting their oil futures contracts recently.

    some think that we could see $39.00 oil soon
    (based on the inflation adjusted low of 2016?)
     
  9. spidergoat Venued Serial Membership Valued Senior Member

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    Trump is helping ignore a murder for the Saudis, of course they will ramp production up for the holidays. We are amoral pigs.
     

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