Crude Oil drops below $100

[Ultegra134]

Crude oil has dropped below $100, the first time in months after touching the highest level since 2009, at $130/barrel. Oil prices have dropped the past two months, with both Brent and WTI Crude trending below the $100 level ($91 for WTI and $97 for Brent oil). According to Oilprices.com, consumers have already seen a slight relief in gas prices, dropping from the historic average of $5/gallon down to $4.16.

Haven't checked in other European countries, but in Greece it has only dropped a few cents till now, I'm expecting it to drop within the next week though (from €2.45 to €2.20 in my area at least). It is believed that oil could fall below $90 if inflation persists, something which is highly unlikely to change since it simply keeps rising, driving leading to large price increases in basic necessary goods.

Have you seen any significant drop in gas prices in your area? Will oil drop even further, despite the ongoing war?

[NeuroticFish]

Have you seen any significant drop in gas prices in your area?

From what I know, in Romania the price has dropped some 10 eurocents (maybe even less than that) from the price we had some 2-3 weeks ago.
But, also from what I know, the drop in the international prices for oil is seen here in the gas prices some 10-14 days later, so let's give them a little more time.

Will oil drop even further, despite the ongoing war?

This is hard to tell, but I would expect that OPEC strikes some deals and adjusts the flow in a way the prices stabilize at the levels agreed (between the members of OPEC and big players like US).
While they do want to earn as much as possible, they also know that if they ruin everybody, then they won't have customers on the long term.

[Fortify]

Crude oil has dropped below $100, the first time in months after touching the highest level since 2009, at $130/barrel. Oil prices have dropped the past two months, with both Brent and WTI Crude trending below the $100 level ($91 for WTI and $97 for Brent oil). According to Oilprices.com, consumers have already seen a slight relief in gas prices, dropping from the historic average of $5/gallon down to $4.16.

Haven't checked in other European countries, but in Greece it has only dropped a few cents till now, I'm expecting it to drop within the next week though (from €2.45 to €2.20 in my area at least). It is believed that oil could fall below $90 if inflation persists, something which is highly unlikely to change since it simply keeps rising, driving leading to large price increases in basic necessary goods.

Have you seen any significant drop in gas prices in your area? Will oil drop even further, despite the ongoing war?

There's a common saying when it comes to gas prices, the price goes up like a rocket and floats slowly down like a feather. There is actually a strong correlation between oil prices hitting record highs and a recession following shortly after, but there is a lot going on around the world right now so it's hard to gauge what will happen. Inflation is going sky high as well in many countries, which stifles demand but Covid caused a lot of disruption. You just have to wonder when any pent up savings and demand left over from the Covid effect will wear out. China is also struggling at the moment, which is reducing demand, because of this zero-covid policy causing a lot of lockdowns. It's a really unpredictable environment right now.

[livingfree]

Yes!

There has been I think two or three weeks of continuous roll back and that's what I need to see more of it. If the trend for oil goes down, I'm sure that there will be a massive domino effect and hopefully it goes to the other industry players that they'll have a roll back as well.

Since with all of the rates have went high, I know that when it comes to roll back prices of goods there's a slight difficulty. But, if the trend goes on, I hope that most of these companies will have a consideration and follow the trend as well of decrease in price.

[Ultegra134]

Crude oil has dropped below $100, the first time in months after touching the highest level since 2009, at $130/barrel. Oil prices have dropped the past two months, with both Brent and WTI Crude trending below the $100 level ($91 for WTI and $97 for Brent oil). According to Oilprices.com, consumers have already seen a slight relief in gas prices, dropping from the historic average of $5/gallon down to $4.16.

Haven't checked in other European countries, but in Greece it has only dropped a few cents till now, I'm expecting it to drop within the next week though (from €2.45 to €2.20 in my area at least). It is believed that oil could fall below $90 if inflation persists, something which is highly unlikely to change since it simply keeps rising, driving leading to large price increases in basic necessary goods.

Have you seen any significant drop in gas prices in your area? Will oil drop even further, despite the ongoing war?

There's a common saying when it comes to gas prices, the price goes up like a rocket and floats slowly down like a feather. There is actually a strong correlation between oil prices hitting record highs and a recession following shortly after, but there is a lot going on around the world right now so it's hard to gauge what will happen. Inflation is going sky high as well in many countries, which stifles demand but Covid caused a lot of disruption. You just have to wonder when any pent up savings and demand left over from the Covid effect will wear out. China is also struggling at the moment, which is reducing demand, because of this zero-covid policy causing a lot of lockdowns. It's a really unpredictable environment right now.

That's correct, right when the war started, gas prices quickly skyrocketed within a few days, now that crude oil is dropping, price changes are subtle and take days or even weeks to appear at the pumps. I'm not expecting a miracle to happen anytime soon, since the exchange rate of EUR/USD is almost 1:1, but a slight relief is better than nothing.

The main concern is the rising inflation, which isn't going to stop anytime soon, everyday goods are seeing major price increases day by day.

[dothebeats]

We've experienced rollback after rollback of petrol prices here in our country but it is still significantly expensive compared to where it was just over a year ago. We're still sitting @ $5 a gallon even though we've already had some rollbacks in the past two weeks. Hopefully it doesn't stay at its current levels and still go down further, but the supply is still not enough to cover around the world and we all know historically that when gas prices come up, they come down so long.

[Agbe]

Who cares the fall of crude oil in Nigeria Delta. From the onset of 1956 when crude oil was found in Niger Delta region the federal government and the State Governments have not Developed the area compared to the abundant natural resources it has produced in the country. I even prefer there is no crude oil in Nigeria. Let me shock you. There are 3 Deltas in the whole world. One is in China then American Mississippi Delta and finally, Niger Delta in Nigeria, China and America Developed their Deltas to the standard level but Niger Delta in Nigeria is left over to decay. In fact it is a squalor in Nigeria and crude oil is found and exploring in this dark area of the country. If I wish there is no crude oil in Niger Delta. The GDP produces in the area is more than her population yet it is the most poverty region in the history of Nigeria. There crude oil price has nothing to do with this part of the world.

[boyptc]

but it is still significantly expensive compared to where it was just over a year ago.

That's right.

I'm happy to see it rolled back but still we need to get back from where it was before or even close at it even with a gain. With my calculations, we're still near half from where it is right now and from where it was a year ago.

I guess there will be a long series of decrease per week until we reaches back there once again. As the price of oil drops, hopefully it gets consistent each week below $100.

[Hispo]

Have you seen any significant drop in gas prices in your area? Will oil drop even further, despite the ongoing war?

In the case of Venezuela, we still have a price of 0,50 $/ Liter, since 2020 when we started to have problems with our oil-processing infrastructure (added to our already existing problems of extraction), now we have also subsidized gasoline, there are about 120 Liters per month we can adquire at a very cheap price, almost symbolic, adquiring subsidized gas can be very simple or take a bit of work the day prior the purchase, depending on where one lives.
Oil prices mostly impact of national budget rather than our gas prices.

[jackg]

we have also subsidized gasoline, there are about 120 Liters per month we can adquire at a very cheap price, almost symbolic

Are you rationed to the 120 litres or is that just what you can get for the discounted rate there?

but it is still significantly expensive compared to where it was just over a year ago.

That's right.

I'm happy to see it rolled back but still we need to get back from where it was before or even close at it even with a gain. With my calculations, we're still near half from where it is right now and from where it was a year ago.

How far would you expect it to fall though? I doubt we'll ever be back down to pandemic levels, somewhere around £1.20/€1.4/$1.4-£1.4/$1.7/€1.7 per litre would be around where I'd expect it to stabilise if there is enough supply and a dip in demand (due to the prices being high and also maybe less travelling after the summer - for the northern hemisphere at least).

[n0ne]

There is really a big politics in each and every country. In my country oil is the major thing that drives the government. So, when the crude oil price increases in the global market the same will be made within the country. When there is decrease in the price per barrel, the same won't be applicable. Here common people need to make protests and several other contempts, only after hard opposition we'll experience a small drop in the price.

When we make such efforts and lower the price, once again the global price per barrel increases and the same will be imposed on the price. In specific the price is not a big thing, it is the tax that makes oil more expensive.

[Silberman]

We've experienced rollback after rollback of petrol prices here in our country but it is still significantly expensive compared to where it was just over a year ago. We're still sitting @ $5 a gallon even though we've already had some rollbacks in the past two weeks. Hopefully it doesn't stay at its current levels and still go down further, but the supply is still not enough to cover around the world and we all know historically that when gas prices come up, they come down so long.

It is the same story as always, if the price of oil goes up then gasoline goes up in price as well, but if the prices go down then the price remain close to the current levels and they make a fortune due to the increased margin of profits, however it is doubtful whether or not the price of oil will remain that low as it seems a conflict between China and Taiwan seems to be imminent and if that is the case I think the price of oil will skyrocket again.

[Sithara007]

~~~
Have you seen any significant drop in gas prices in your area? Will oil drop even further, despite the ongoing war?

Here in India, we can't expect any significant drop unless the price goes below $80 per barrel. As of now, the government owned refiners such as BPCL and IOC are incurring losses close to $0.20 per liter of gasoline, because the authorities have refused to increase retail price. The cost of production remains at around $1.40 (including taxes), and they are selling it at around $1.25 per liter. The government has refused to reduce the taxes any further. Some of the losses are offset with imports of discounted crude from Russia, but it is not enough. The three government owned companies (IOC, BPCL and HP) are estimating their losses at $1.35 billion just for the first quarter of 2022-23. 

[Smack That Ace]

Gasoline prices suddenly dropped due to fears of a global recession, but I don't think this decline will last.
Organization of Petroleum Exporting Countries (OPEC) yesterday announced an increase in production to balance world demand, but with an increase of 100,000 bpd/day, this is a negligible increase and will not make too much of a difference to the current energy crisis.

~~ however it is doubtful whether or not the price of oil will remain that low as it seems a conflict between China and Taiwan seems to be imminent and if that is the case I think the price of oil will skyrocket again.

The war is bound to happen, the US cannot defend Taiwan forever. But it won't happen soon, conflict with the US right now is not in China's favor, when its economy is somewhat slowed down because of the zero covid policy. When war breaks out, the US and its allies will impose sanctions on China and will bring their economy to a standstill.

[DrBeer]

Urals $93.31 per barrel everything depends only on ruZZian oil

I read about the reasons for such a fall! This reason, attention - "Oil quotes are falling during trading on Wednesday evening after the release of data on energy reserves in the US and the publication of the results of the OPEC + meeting."

No, this is not even an increase in production, which is guaranteed to be, and not the EU's refusal to purchase oil from Russia, which will happen a little later.

Soon China and India will demand money from the country of the terrorist so that they pay them for taking oil that no one needs

[stompix]

Haven't checked in other European countries, but in Greece it has only dropped a few cents till now, I'm expecting it to drop within the next week though (from €2.45 to €2.20 in my area at least).

Gasoline is down at about 15 Eurocents and diesel at around 10 Eurocents here.
You have to take into account how much the price is the oil, how much are taxes, and how much the other expenditure of the refineries and petrol stations and the usual VAT. Because if out of those 2.45 50% are taxes there is no way even with oil at zero for gas to be under 1.40-1.60 with all costs. Just checked for Greece and the cheapest gas ever was at 1.28, during the lockdown.

It is believed that oil could fall below $90 if inflation persists, something which is highly unlikely to change since it simply keeps rising, driving leading to large price increases in basic necessary goods.

It could fall even further and not because of inflation alone but because demand destruction starts to crawl in.
Once people are afraid of spending or can't afford to spend, there goes the demand so down with the prices but of course, it's not a complete circle until some providing the goods will go bankrupt or shutting down as they have no customers, squeezing offers and then the matter starts to get in somewhat of an equilibrium. That is if not some other shit happens somewhere in the world.

That's why things like the barrel at $300, like some doomsayers think, can't really happen because once the price hit that there will be nobody affording it, nobody buying so the prices will go themselves down, it's basic economics.

Urals $93.31 per barrel everything depends only on ruZZian oil

Yeah, $74.74 as we speak, and that's the price that some pay, most buy it well under the price for hefty discounts directly at the source.
So much for the billions in extra profits, they are on the same level as 2018 now.  

LE:
One hour later, and WTI dropped below $90, for the first time since February 10th.

[DrBeer]

Urals $93.31 per barrel everything depends only on ruZZian oil

Yeah, $74.74 as we speak, and that's the price that some pay, most buy it well under the price for hefty discounts directly at the source.
So much for the billions in extra profits, they are on the same level as 2018 now.  

And this is provided that the flywheel of solutions and problems in the gas / oil market has just started!
For example, today Russia has already begun to reduce gas production. It seems to be something like this? But this is the first step towards conservation, and for Russia this actually means the closure of gas wells, since reactivation, technologically, is not available to Russia. Now they have started stupidly burning gas, then - conservation ...
Source https://lenta.ru/news/2022/08/04/ne_dostavajsya_zhe/

The same goes for oil

[Frankolala]

  The price of crude oil has dropped down due to the fear of recession in the world. In my country petroleum and gasoline price still remains the same because our government is looting from the crude oils funds. My country has never reduced the price of petroleum product of gasoline instead they always increase the price time to time for their own benefit.
  Crude oil is my country major export commodity, with the declination in crude oil price this might lead to more inflation and hardship in the country.

[Ultegra134]

It is believed that oil could fall below $90 if inflation persists, something which is highly unlikely to change since it simply keeps rising, driving leading to large price increases in basic necessary goods.

~snip~
One hour later, and WTI dropped below $90, for the first time since February 10th.

Same here, dropped around €0.20/liter, but it's still too expensive to notice. Gas was always expensive in Greece, due to high taxation and excise tax, which is up to €0.70/liter. Covid-19's quarantine drove prices down n 2020, the lowest I've ever seen them, at €1.33/liter, it felt so cheap fueling up back then.

Personally, I've cut my fuel usage up to 2/3 of what it was in the past 2 years, I've resorted to using my motorcycle, which uses half of what my car is, while due to long hours working and the less available income, I'm no longer capable of using my car for leisure purposes. Oil continues to tumble, the only positive thing happening with all these excessive prices.

P.S Great website, provides great inside on fuel prices

[DrBeer]

It is believed that oil could fall below $90 if inflation persists, something which is highly unlikely to change since it simply keeps rising, driving leading to large price increases in basic necessary goods.

~snip~
One hour later, and WTI dropped below $90, for the first time since February 10th.

Same here, dropped around €0.20/liter, but it's still too expensive to notice. Gas was always expensive in Greece, due to high taxation and excise tax, which is up to €0.70/liter. Covid-19's quarantine drove prices down n 2020, the lowest I've ever seen them, at €1.33/liter, it felt so cheap fueling up back then.

Personally, I've cut my fuel usage up to 2/3 of what it was in the past 2 years, I've resorted to using my motorcycle, which uses half of what my car is, while due to long hours working and the less available income, I'm no longer capable of using my car for leisure purposes. Oil continues to tumble, the only positive thing happening with all these excessive prices.

P.S Great website, provides great inside on fuel prices

By the way, reducing the consumption of gasoline / diesel fuel is a good step both to reduce the burden on the family budget and to help the global crisis. I recently sold my 4 liter Toyota Prado, I am going to buy a hybrid car for long trips, and an electric car for city trips, exclusively for the home-office-shop-home cycle, which is 90% of the total trips. In Ukraine, gasoline / diesel fuel has also skyrocketed in price, it's time to reduce dependence on such a resource