Won't Anyone Buy Some Oil?
OPEC’s threatened 2 million barrel/day output cut has done nothing to halt oil’s collapse. The AP reports that Wednesday’s futures market dipped below $40/barrel for the first time since 2004. Markets are spooked by the realization that even mighty China is in a world of growth hurt at the same time as an unprecedented continued fall in US demand. US “demand for gasoline over the four weeks ended Dec. 12 was 2.7 percent lower than a year earlier.” “‘There’s just so much oil in inventory out there right now,’ said Michael Lynch, president of Strategic Energy & Economic Research. ‘Nobody wants to buy this stuff.'”
The demand collapse continues even though this year’s Dec. 8 retail price was $1.699/gallon, down 44% from last year’s $3.038. Watch out below, $1/gallon here we come since the wholesale gasoline futures market has January delivery gasoline at $1.0055. Retail prices slightly higher, your mileage may vary, see local dealer for details. Hmmm, it might be time for one last big road trip.
More by John Horner
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It's going to take some intestinal fortitude to push ahead with renewables in this oil-price climate, which will be tragic in a decades time. It also seems to have got people out buying trucks again which is equally depressing. At least those are credit approved this time. Can't anyone in the USA think further than next quarter?
Damn those evil Big Oil companies, now they're manipulating prices so they can lose money on what's in inventory!
What I want to know is what happened to those folks who confidently boasted that oil would NEVER EVER EVER go under $100/bbl EVER again?