How low will it go? (gas prices)

[AlphaMicra]

That's awesome; I paid a little more today; 89.9 cents a liter. Haven't seen prices like this since 2005!

[MetroMPG]

Saw 92 cents here! Yowza. Going to fill up tomorrow, methinks.

[AlphaMicra]

What a wonderful way to end the year.

[ijamie]

$0.959 per Litre Here in the beautiful Comox Valley BC

[Robm6981]

Just waiting for it too drop below 0.80 out here now lol.. Havent seen prices like this since 2004!

[micrapolis]

here in vancouver, i think it's a tiny bit above $1...

btw, you guys know why this is happening? there's a number of reasons OPEC - saudi arabia, mainly - is pulling this trick ...

i expect this to last, at most, a year. Likely less than that.

[AlphaMicra]

I think a big part of the reason is that traditional big oil investors like the Rockefeller's have pulled out all of their oil investments, so speculation on oil futures has dropped right off. Another reason is a drop in demand. In other words, we're seeing the true price of gas for current market conditions.

[micrapolis]

I think a big part of the reason is that traditional big oil investors like the Rockefeller's have pulled out all of their oil investments, so speculation on oil futures has dropped right off. Another reason is a drop in demand. In other words, we're seeing the true price of gas for current market conditions.

eh i dunno how true that is.

first, any and all demand drop off by westerners is more than made up by the emerging markets. namely india and china.

second, it appears saudi arabia may want to starve off profits from new North American shale oil, and also hurt ISIS which supposedly is selling off oil at the black market. and maybe hurt russia because russia supports syria's assad?

[MetroMPG]

Just waiting for it too drop below 0.80 out here now lol.. Havent seen prices like this since 2004!

80.9!

I saw 89 this week.

expect this to last, at most, a year. Likely less than that.

That's what I keep reading as well: "The best cure for low prices is low prices." (Stimulates demand & drives out low-profitability producers.)

Boom & bust, baby. That's the way oil works.

[AlphaMicra]

eh i dunno how true that is.

first, any and all demand drop off by westerners is more than made up by the emerging markets. namely india and china.

Except for the fact that China's demand has been dropping:
http://www.platts.com/pressreleases/2014/082714/no

As well as across Europe, Japan, India, China, Brazil and much of the emerging world market:
http://www.brookings.edu/blogs/plane...demand-ebinger

second, it appears saudi arabia may want to starve off profits from new North American shale oil, and also hurt ISIS which supposedly is selling off oil at the black market. and maybe hurt russia because russia supports syria's assad?

I really don't believe Saudi Arabia could produce sufficiently large enough quantities of oil to cause such an effect; last I checked, they represented around 8% of oil imported to the US. They do make a convenient scapegoat, however, when new job creation in domestic coal and tar sand oil supply doesn't pan out. I do not think it's a coincidence that the prices dropped shortly after the Rockerfellers and other large investors announced they were going to pull out of the coal and tar sands developments.

http://www.bloomberg.com/news/2014-0...k-climate.html

Nothing hurts futures more than when the big players pull out their investments.