Oil may hit $35/barrel in wake of auto bailout not getting approval

[EJ25RUN]

Autoblog...

With the U.S. Senate denying the Detroit 3 relief plan, it looks like oil prices might continue to tumble. Our sibling site BloggingStocks is predicting barrel prices might drop as low as $35 as a result. This comes on the heels of predictions of higher prices in the near future.

It had been thought that OPEC and possibly Russia would be curtailing production, which might have led to higher prices, but if the U.S. auto industry collapses, demand for oil could plummet. That would result in even lower oil and gas prices.

In fact, oil prices started dropping Thursday night as soon as traders heard that Senate Republicans had blocked the bill, with barrel prices checking in at $44.76 as of Friday morning. We just saw regular unleaded for $1.59/gal at a station down the street this morning and thought we had woken up in 2000. Can sub-$1 gas be far away?

[Nerdsrock22]

Man, I hope so.

Nothing like filling up my tank with one Hamilton.

[EJ25RUN]

Man, I hope so.

Nothing like filling up my tank with one Hamilton.

Im almost there too. :D

[Nerdsrock22]

Im almost there too. :D

How big is the STI tank?

[EJ25RUN]

How big is the STI tank?

15.9 !

[Nerdsrock22]

True.

It's times like these when driving a sub-compact is less cool.

[EJ25RUN]

True.

It's times like these when driving a sub-compact is less cool.

Yeah, and that is 20 bux on premium. Not like i will run anything else but just saying.

[Elbow]

As cool as it is it's not GOOD lol, but it def. makes going for random long drives and all a lot more easy.

[Nerdsrock22]

My cheapest fill-up so far has been around 13 bucks. I think gas was like 1.45 or something.

[green91]

Ive got a feeling they are gonna cut production bigtime to curtail some of these drops. Alot of the exporting countries require the tax revenue to survive.. ive read some reports (not sure if i beleive them or not) that they require $60/barrel

[1SOL2NV]

it only takes me 14 dollars to fill up ... lol . but these low prices aint GOOD by ANY means .. even tho i love them ... i havent seen them this low since i was 13 ..lol

[rmeyer114]

gas prices are sick but definatley not good but like every1 else it makes random driving around alot cheaper :), and im with u 1sol i aint seen gas this cheap since i was bout 13 myself

[RL...]

I can fill up for about $25!

This is awesome for my wallet...

[Atlblkz06]

*Slurp* Times like *slurp* these, nothing like *gulp* a 7 liter *slurp* V8...

Sure we hedged the hell out of oil, but the OPEC bastards are also to blame. Now they can get a taste of their own medicine. Its too bad the entire world has to suffer because they couldnt be content with oil at 80 a barrel. By now they would have more money had they not have gotten greedy.

Now gimme that cheap gas...bitch!

[1SICKLEX]

OPEC is going to cut production to 1.5 mill barrels, from 2 mill.

Its not just demad dropping, investors no longer want this commodity and are selling left and right.

[Atlblkz06]

^^ on paper! The oil doesnt really exist.

[2turbo4u]

Last week is seen gas for $1.25 a gal up in Jasper. I paid $1.35 last week at the Kroger on Salem rd in Covington.

[quickdodge®]

I paid $1.35 last week at the Kroger on Salem rd in Covington.

I did, too. Dead empty in my CVCC only cost me $9.85, lolol. Later, QD.

[quickdodge®]

Also don't forget, prices, statewide, automatically drop $.04/gal on January 1 from the new gas tax. Later, QD.

[K20Z1]

i love this gas price lol.. my gas tank used to be $45 now its around $22

[2turbo4u]

I did, too. Dead empty in my CVCC only cost me $9.85, lolol. Later, QD.
How big is your tank? It cost me $18 and change to fill up my truck. I saw you one day when I was going to workand so were you.

[Vteckidd]

OPEC can cut all they want, demand is demand if its not there, no amount of cutting production is going to drive the prices up.

Its a symbiotic relationship, they HAVE to sell to us, and we have to BUY from them.

If it goes to $3-4 per gallon, they are only going to make themselves worse.

In the global economy, its just not going to happen. Expect gas prices to stay LOW (sub $2) while the Great Recession runs its course

[jfman]

Rednecks are dusting off their K5's on 42's :D :D :D

[green91]

Sure we need oil but most opec exporting nations are much closer in proximity to china and they demand a large amount themselves.. There is a production cut point to where the demand is higher than their output.

[greasemunkey]

isn't this ideal for U.S. auto makers right now? we are known for gas guzzling cars and now gas is cheap so sales should be up alot right now. The only reason I see car sales low here are because people are scared that gas will go back up and they will be screwed into 80$ a fill up again. But how is it bad if gas prices are low???

[Vteckidd]

ah china is contractng faster than we are they aren't consuming nearly as much

[ISAtlanta300]

isn't this ideal for U.S. auto makers right now? we are known for gas guzzling cars and now gas is cheap so sales should be up alot right now. The only reason I see car sales low here are because people are scared that gas will go back up and they will be screwed into 80$ a fill up again. But how is it bad if gas prices are low???

It's the 'learning child' syndrome. Burn yourself on the stove once, and you'll be hesitant to go near it again. A lot of people got 'burned' and felt the pain at the pump. So even though gas prices are lower now, everyone still remembers the pain and are hesitant to buy a gas guzzler again.

[B18c1Turboed]

NOT IF OPEC CANT HELP IT!!!



NEW YORK (CNNMoney.com) -- The Organization of Petroleum Exporting Countries, in a bid to prop up falling oil prices, said Wednesday that it would cut production by 2.2 million barrels a day starting next month.

OPEC hopes the cuts will stabilize prices, which have dropped by more than $100 a barrel since reaching a record high in July. The worsening economic downturn has sapped demand worldwide.

A production cut had been widely expected. Indeed, U.S. crude for January delivery fell $1.94 to $41.66 a barrel shortly after the announcement. Oil had been as high as $45.50 earlier in the day.

Oil prices have fallen rapidly in recent months due to "the repercussions of the financial crisis," said OPEC President Chakib Khelil. "We are in a very deteriorating environment," he said.

"This move by OPEC was well telegraphed by the market," said Phil Flynn, senior market analyst with Alaron Trading in Chicago.

Before the meeting, Saudi Arabia's Oil Minister told reporters that the group would cut 2 million barrels a day.

The new cut comes on top of a recent decrease of 2 million barrels a day announced earlier, bringing production down a total of 4.2 million barrels per day from September levels.

With the cuts, OPEC nations will produce roughly 24.8 million barrels a day.

Khelil said the cartel hopes oil will stabilize between "$70 to $80 at least."

If oil fails to stabilize, Khelil left the door open for more cuts. "If you are not surprised , then we have to do something about it," he said.

The group is next scheduled to meet on March 15, but Khelil said member states were prepared to hold another meeting sooner if needed.

The nations in OPEC produce about 40% of the world's oil. The group met Wednesday in Oran, Algeria.

[b]Non-OPEC fizzle: There had also been rumors early Wednesday that some non-OPEC countries would follow an OPEC cut with cuts of their own. But non-OPEC cuts failed to materialize.

"People really wanted to see a couple of non-OPEC producers step up to the plate, particularly Russia," said Tom Orr, head of research for brokerage Weeden & Co.

Top officials from Russia and Azerbaijan hinted that they may cut production with OPEC, according to reports, but no non-OPEC cuts were announced as the session progressed.

"They (Russia) haven't agreed to anything with us," said Khelil. As a separate nation, "they'll have to make their own decision," he added.

U.S. inventories: Meanwhile, the U.S. Energy Information Agency reported Wednesday that crude oil inventories increased 500,000 barrels from the previous week.

Analysts had expected to see a decline of 900,000 barrels of crude, according to a survey from research firm Platts.

Total gasoline inventories increased by 1.3 million barrels and are near the lower boundary of the average range. Supplies of distillates, which are used to make diesel and home heating oil, increased by 2.9 million barrels.

Analysts had expected a rise of 1.5 million barrels of gasoline, and a 1.8 million drop in distillates.

Economy and demand: As the global economy has slowed, the price of oil has plunged - nearly 70% since hitting a record high of $147.27 a barrel in mid-July. Investors are worried that worldwide slowdowns have tamped down demand for petroleum-based fuels.

In the United States, the world's largest oil consumer, driving has dropped off (http://money.cnn.com/2008/12/12/news/economy/driving_decline/index.htm?postversion=2008121212) significantly over the past year, according to the Transportation Department.

Oil prices tumbled on Tuesday after the Federal Reserve lowered its key interbank interest rate to between 0% and 0.25% (http://money.cnn.com/2008/12/16/news/economy/fed_decision/index.htm?postversion=2008121617) in an effort to jump-start the economy.

"These aggressive moves that have to be taken by the Fed are really not good for oil right now," said Flynn.

[UpSideDownDesi]

i am keeping the guzzler in the garage, and keeping the DD on the road. They increase gas prices, only thing i am gonna do is drive less. OPEC greed can only go so far. I would like to see how far they can go. When demand for oil does drop like a rock i hope someone repeats this comment back to OPEC's president, "If you are not surprised [by the cuts], then we have to do something about it".

[Nismo]

fuck those OPEC bastards.

[quickdodge®]

How big is your tank? It cost me $18 and change to fill up my truck. I saw you one day when I was going to workand so were you.

8 gallon tank for me. And when did you see me and how do you know I was going to work, lolol? Later, QD.

[DVSRX-7]

hopefully the prices drop more.. i remember filling up with $75 and that was only 3/4 tank!! thats bullshit.. hopefully is they continue to drop i hope i can fill up with 20 bux

[DieselNuts]

at one point, i was paying $63 to fill up...last fill up was $24 @ 1.67/gal premium.

[2turbo4u]

8 gallon tank for me. And when did you see me and how do you know I was going to work, lolol? Later, QD.
It was a few months ago after you got the plates for the CVCC. It was 4 something in the morning and you got of I-20 @ Panola or Sigman I can't remember ,lol.

[IMPORTchic]

So question....why have prices went up a good .10 this week?! Is it with the holidays coming up?

And why the helll is 93 not .20 more than regular like it use to be? Now it just depends on where you go. ITs anywhere from .30 to (the highest I have saw is) .70 more.
Thats FAIL. lol

Filled up yesterday with my kroger plus card -.10 for $17!!! Whooo hooo! =)

[Got Milk?]

cool. i remember when i spent like $68 to fill up, now its like less than 30 bucks to fill up.

[jfman]

And why the helll is 93 not .20 more than regular like it use to be? Now it just depends on where you go. ITs anywhere from .30 to (the highest I have saw is) .70 more.
Thats FAIL. lol
=)

yep wtf is this :ninja: :police: :2up:

[B18c1Turboed]

damm you guys where getting off cheap. I was paying about 120-140 to fill up my truck!!!! I cant understand why oil is at 39.80 per barrell but the price went up and hasnt dropped down yet.

Gas prices where changing as soon as stock went up, in one day i saw it go up 6 times, but as stock does down it dont drop the same. GREDDY BASTARDS

[Atlblkz06]

Well come on now, you didnt expect them to just sit still! Of course they're going to cut production and look after their own interests. Its ok. In a few decades oil will be worth as much as sand and they'll have nothing to trade with.

Prices will go up as fast as possible and drop as slowly as possible - just makes sense doesn't it? Its not like we can do without gas for a month because its too expensive.

Even with the cuts, oil will only go up to ~1.69 for regular.

[DinanM3atl]

I love how most Americans feel they have a right to cheap gas. I wish it was 4 bucks a gallon. Keeps morons off the road and it would in turn mean the economy is more than like on fire!

Sure gas is cheap right now but the economy is terrible!

[DinanM3atl]

So question....why have prices went up a good .10 this week?! Is it with the holidays coming up?

And why the helll is 93 not .20 more than regular like it use to be? Now it just depends on where you go. ITs anywhere from .30 to (the highest I have saw is) .70 more.
Thats FAIL. lol

Filled up yesterday with my kroger plus card -.10 for $17!!! Whooo hooo! =)

.10 jump when gas was a buck or two. Well when it goes up to 4 dollars they wanted to keep the same percent jump. So they went to .15 or .20

They just didn't drop it back down ;)

[Kevykev]

My theory: Prices Bottoming out out 1.29 for regular but later stabilizing in the low $2.00 range.

I'm glad the oil industry is going through this, Failure changes things.