The reason that crude oil price crashed

[BTCXE]

Im sure some of it has to do with Saudis wanting to fuck Russia over Syria

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[picolo]

Im sure some of it has to do with Saudis wanting to fuck Russia over Syria

It has to do with a weak demand and an abundant production.

[screwUdriver]

I saw a few folks mention alternative energy sources in the discussion but I think this is really a stronger and valid point that deserves more elaboration.  "The reason that crude oil price crashed" is obviously the result of OPEC reactions to excess supply, demand and resultant lowered price.  However, I really 'wish' that it were for better reasons such as greater availability of renewable energy.

When home solar panels are made for the lay person to install at a low enough price and at high enough efficiency to work even during low light periods then there could be even more electric vehicles and even less demand on fossil fuels.

Lower crude prices are probably bad for renewable sources of energy.
Now they will be seen as uncompetitive and the required investments in renewable technology won't be made.

Renewable energy has always been uncompetitive with other energy sources (oil included) as they are very expensive to make.

I would say that a better argument would be that cars like the tesla will be even less competitive in terms of cost to use due to lower oil (and as a result gas) prices

[NewLiberty]

Im sure some of it has to do with Saudis wanting to fuck Russia over Syria

It has to do with a weak demand and an abundant production.

Usage is increasing slower than supply is increasing.
Oil has a large markup due to scarcity created from cartelling, and that markup is contracting.

At a lower price, usage will increase more swiftly, until then we should expect the price to over-correct.

As for renewable energy being more expensive?  That depends somewhat on what is included in the cost.

[picolo]

Im sure some of it has to do with Saudis wanting to fuck Russia over Syria

It has to do with a weak demand and an abundant production.

Usage is increasing slower than supply is increasing.
Oil has a large markup due to scarcity created from cartelling, and that markup is contracting.

At a lower price, usage will increase more swiftly, until then we should expect the price to over-correct.

As for renewable energy being more expensive?  That depends somewhat on what is included in the cost.

I agree with you on oil. As for "renewable" energy, it ends up being more costly than natural resources.

[NewLiberty]

Im sure some of it has to do with Saudis wanting to fuck Russia over Syria

It has to do with a weak demand and an abundant production.

Usage is increasing slower than supply is increasing.
Oil has a large markup due to scarcity created from cartelling, and that markup is contracting.

At a lower price, usage will increase more swiftly, until then we should expect the price to over-correct.

As for renewable energy being more expensive?  That depends somewhat on what is included in the cost.

I agree with you on oil. As for "renewable" energy, it ends up being more costly than natural resources.

This depends on what you are measuring, how and where.
It is not the universal truth you seem to imagine it might be.
The Hoover Dam seems to have worked out pretty well, and there are many other examples.

[leopard2]

America's fracking boom is deeply unhealthy, both ecologically and economically, but has been pushed by the government and industry.

The interesting question is, does Uncle Sam have a desire to destroy Russia and trigger a large war to reset the financial bubble?

If so, they will subsidize (or give tax breaks/cheap credits) to the fracking industry to keep this going. Otherwise fracking will decrease quite a bit over the next year. It requires 80$ per barrel to keep fracking going on a free market.

But again I doubt that the oil market is free ATM because cheap oil hurts Venezuela and Russia and open warfare is not an option against those two. 

[picolo]

America's fracking boom is deeply unhealthy, both ecologically and economically, but has been pushed by the government and industry.

The interesting question is, does Uncle Sam have a desire to destroy Russia and trigger a large war to reset the financial bubble?

If so, they will subsidize (or give tax breaks/cheap credits) to the fracking industry to keep this going. Otherwise fracking will decrease quite a bit over the next year. It requires 80$ per barrel to keep fracking going on a free market.

But again I doubt that the oil market is free ATM because cheap oil hurts Venezuela and Russia and open warfare is not an option against those two. 

If the price of oil stays lower than say 70$ a barrel, most the fracking will stop but it is unlikely that the price of a barrel will not go back to 70$ then 100$ within a few years.

[NewLiberty]

The same reason it did EXACTLY six years ago.

NO, sorry, you are simply wrong about this.

It has been sort of the point of this whole thread is that this is a DIFFERENT reason than 6 years ago.
Six years ago there was a global recession from the real-estate financial theft by the banking cartels (first from each other, then from the government bailouts / taxpayers).
This time it is not because of declining usage from a global recession.
USAGE is increasing.

DEMAND at a certain price falls due to an increase in SUPPLY.
So oil gets cheaper, which stimulates even more oil USAGE.

If you look at the chart you posted.  It shows the difference.
This time oil and stocks are not moving together, six years ago they did.

[Sir Alpha_goy]

.

[dlowings]

The reason oil prices have come down is because OPEC has cut prices arbitrarily. They were artificially high to begin with. On average it costs an OPEC nation ~$30 to produce a barrel of crude. They're still making a shitload of profit.

Yes OPEC makes profit. But many countries depend on that profit. They organize education, .... with that money.

Reason why oil price come down is not opec is companies in USA using that new technology to get oil. But that is expensive method and at some point those companies will close. Opec is smart and will not try to maintain price artificially high. Lets teh market do and take off those that produce with to big costs.

Those companies took loans in banks. And when they will bankrupt and will not be able to pay off debts. Guess who will pay this?

OPEC = legalized price fixing...

Someone got tired of hearing Sean Hanity sell all the wonderful jobs in North Dakota .. It's not profitable to keep that job market a'float .. Funny how they can turn that off and on whenever they want..

The manipulation is so thick I don't even pay attention to oil any more.

[freedomno1]

The question is that now that Crude is at 50 dollars a barrel where do we find support and what plays are the best for buying stock in
Either way this is a far cry from 200 dollar oil then 100 dollar oil
When it starts moving again upwards as new production etc is stopped and fracking gets owned for a while we might get some nice returns there.
Either way stock pain is coming in energy, manufacturing or companies with large oil inputs will get a boost from this so a few ways to play the stock market.

[picolo]

The question is that now that Crude is at 50 dollars a barrel where do we find support and what plays are the best for buying stock in
Either way this is a far cry from 200 dollar oil then 100 dollar oil
When it starts moving again upwards as new production etc is stopped and fracking gets owned for a while we might get some nice returns there.
Either way stock pain is coming in energy, manufacturing or companies with large oil inputs will get a boost from this so a few ways to play the stock market.

The production of "new oil" should decrease which should help the price in a world where oil is much needed for everything.

[2dogs]

The question is that now that Crude is at 50 dollars a barrel where do we find support and what plays are the best for buying stock in
Either way this is a far cry from 200 dollar oil then 100 dollar oil
When it starts moving again upwards as new production etc is stopped and fracking gets owned for a while we might get some nice returns there.
Either way stock pain is coming in energy, manufacturing or companies with large oil inputs will get a boost from this so a few ways to play the stock market.

Can anyone mention any (fracking) stocks they would be buying now?

[NewLiberty]

The question is that now that Crude is at 50 dollars a barrel where do we find support and what plays are the best for buying stock in
Either way this is a far cry from 200 dollar oil then 100 dollar oil
When it starts moving again upwards as new production etc is stopped and fracking gets owned for a while we might get some nice returns there.
Either way stock pain is coming in energy, manufacturing or companies with large oil inputs will get a boost from this so a few ways to play the stock market.

Can anyone mention any (fracking) stocks they would be buying now?

I'd be looking at the other end, rather than extraction.  Oil transportation and refining (and use).
Cheap oil will be around for a while, usage will increase, so pipelines, refining, and big users like airlines, etc.

[dmeter]

I do not have time to explain everything. Simple answer is increasing the production of 3-4 billion barrels a day. global strategic reserves, refineries and private reserve companies, various spot market warehouses, reserves of oil pipelines, reserve retail products, other reserves are at 90-100% capacity.  tankers ship is full of oil and wait for customers that don't coming. Eni starts production at the Nene Marine Field 05:01 2015 140 000 Barrels day, and cancel import for 140,000 barrel day from Russia, also by Eni 31.12 2014 open goliat oil field additional 100000 barrel field day, also lese import 100,000 barrel day .
Also Statoil open new well and the north sea + 100 000 a barrel to EU market.
USA every month open new well for 100000 barel.Russia is on high production 11 000000 barrel day.
Consummation  world drop for 5-6% whit pumping crude oil in  reserve .real drop 10%
China don't have more storage capacity for crude oil, and lease tanker for 80 million barrel crude oil and sale under market price for 4-5 $ barrel.china bay Crude Oil Long-term contract and now is under big shit.

[picolo]

I do not have time to explain everything. Simple answer is increasing the production of 3-4 billion barrels a day. global strategic reserves, refineries and private reserve companies, various spot market warehouses, reserves of oil pipelines, reserve retail products, other reserves are at 90-100% capacity.  tankers ship is full of oil and wait for customers that don't coming. Eni starts production at the Nene Marine Field 05:01 2015 140 000 Barrels day, and cancel import for 140,000 barrel day from Russia, also by Eni 31.12 2014 open goliat oil field additional 100000 barrel field day, also lese import 100,000 barrel day .
Also Statoil open new well and the north sea + 100 000 a barrel to EU market.
USA every month open new well for 100000 barel.Russia is on high production 11 000000 barrel day.
Consummation  world drop for 5-6% whit pumping crude oil in  reserve .real drop 10%
China don't have more storage capacity for crude oil, and lease tanker for 80 million barrel crude oil and sale under market price for 4-5 $ barrel.china bay Crude Oil Long-term contract and now is under big shit.

You gave a few good reasons why the price tanked, some of the reasons you gave have only a very small impact but basically there are plenty of oil and a stable consumption.

[waterpile]

according to the news there is an abudant supply of fuel thats why the prices are going down but who knows there might be another reason behind the curtain.

[smooth]

according to the news there is an abudant supply of fuel thats why the prices are going down but who knows there might be another reason behind the curtain.

The other reason is weak demand (weak demand is not necessarily equivalent to declining consumption). China is certainly slowing down, the rest of the BRICs are in trouble, Europe is a mess and Japan is worse. Only the US has a sort of good economic growth, but even that is spotty (much of it was high cost oil driven for instance).

Oil prices are very sensitive to demand. Look at what happened in before and after 2007.

[freedomno1]

Well finding the bottom is what the speculators are up to at the moment
40 dollar a barrel perhaps even a dip to 30 then questions of duration are we here for a long haul or only for the short run, lot of questions still in the oil market, kind of thinking it will be long term Saudis will keep production up Russia will keep production up until they can force American Fracking operations to start shutting down.

New production is frozen though as is LNG at this price.