Tag: OPEC

By on August 17, 2020

Ever since the first major oil fields were discovered at the start of the 20th century, the world has been on a never-ending hunt to see where else black gold might be hiding. Monetizing seepage areas goes back even further. But with global oil demand having dissipated on account of the pandemic, there’s little reason to spend cash on additional procurement.

Combine that with the green movement doing everything it can to convince governments there’s only one ethical way to handle energy, and we’re likely to be moving into an era where fossil fuels sell for less but cost more to harvest/utilize thanks to carbon emission regulations.

This has left oil companies pondering the true value of seeking new sources of oil, with some having already decided there’s no point. (Read More…)

By on April 20, 2020

While OPEC member states and other oil-producing counties have signed a pact to stem the flow of crude by 10 million barrels a day and hopefully rein in the current price-crashing glut, the situation remains bleak for oil producers around the world. On Monday, May futures for West Texas Intermediate (WTI) dropped to the floor, with prices hitting $5 per barrel.

That number shifted into the negative* as the above paragraph was being written. We’re guessing that’s because the end of the May contract forces physical receipts at a time when storage capacities are basically nonexistent. June WTI prices are still riding just below $23 per barrel.

Meanwhile, Brent Crude is hovering around $26 bbl as the OPEC Basket hangs onto $17.73 bbl on a 4-day delay. The assumption is that both will come down, though perhaps not as dramatically as WTI did.  (Read More…)

By on April 12, 2020

Looking for an added dose of bad news, recently laid-off, pandemic-sheltering readers? Gas prices should be heading northward before long, now that Russia and OPEC member countries have reached a pact to curtail oil production, thus inflating the near-worthless value of a barrel of crude.

That means prices at the pumps won’t be quite as enjoyable in the coming weeks. Maybe it’s time to brave the outside world tonight and fill up that tank — and any other safe, sealable vessel you can get your hands on. (Read More…)

By on April 7, 2020

The world’s largest oil producers are meeting this week for negotiations aimed at saving the energy sector a lot of hardship further down the road. That includes the Organization of the Petroleum Exporting Countries (OPEC), which has been at odds with itself more than usual of late. Hampered by dwindling demand, member countries are suffering and aren’t sure what’s to be done about last month’s price plunge and surplus of crude.

During the cartel’s last meeting, Russia declined to collaborate with OPEC’s planned production cuts. This sent Saudi Arabia into a furious tizzy; it quickly attempted to flood the market with bargain oil in an attempt to drive out lesser players. Like everything else, this was further complicated by the global pandemic. The coronavirus has suppressed oil use to a point where suppliers are growing concerned about storage capacity running out.  (Read More…)

By on March 10, 2020

With the coronavirus keeping people indoors and shale drilling keeping U.S. oil prices relatively stable, you’ve probably noticed gasoline bills being quite reasonable of late. Well, don’t get used to the sums you’re paying now, as analysts project fuel prices will drop even lower as 2020 progresses. While you might think this is due to national quarantines and lessened demand, you’d only be half right.

Last week, the Organization of the Petroleum Exporting Countries (OPEC) failed to strike a deal that would have enacted production cuts to better stabilize the market. Instead of slashing output, Saudi Arabia started slashing prices as it sought ways to ramp up production. Russia immediately responded by promising to increase its own output, leading to what looks like an all-out price war.  (Read More…)

By on June 11, 2019

The end of the Seventies was a time of quiet reflection. A time where Americans pondered things like fuel prices, polyester suits, and what a large sedan should be. As the reality of automotive downsizing moved ever closer to realization, one or two of the large sedan dinosaurs had a last hurrah. Today’s Rare Ride is one such example.

It’s a 1979 Lincoln Town car; more specifically the extra-luxurious Williamsburg Edition.

(Read More…)

By on February 25, 2019

While the 2019 fuel forecast calls for temperate prices at the pump, Goldman Sachs claims we could be in for a brief surge this spring.

Global oil production is expected to take a sizable hit next month. Saudi Arabia, along with the rest of OPEC, has been limiting production to prop up prices. Meanwhile, Venezuela is having trouble across the board. The nation’s ongoing political crisis has resulted in a steady decline in oil production since 2013, and U.S. sanctions effectively made doing business with Venezuela’s state-owned oil company, PDVSA, an impossibility overnight.  (Read More…)

By on August 3, 2018

The Trump administration’s ongoing endeavor to replace existing fuel economy mandates with something easier on automakers is a hot topic, but the issue has more angles than a rhombicosidodecahedron. One that took a backseat during much of our coverage is where the oil industry fits into all of this. We figured it was pretty obvious because, every time we heard the word “rollback,” our minds automatically added the cash register sound effect.

Car manufacturers aggressively lobbied for more lax corporate average fuel economy (CAFE) standards since Donald Trump took office. But so has the oil industry; it just wasn’t doing so quite as openly. So what exactly does the federal government’s fuel economy rollback mean for Big Oil? Don’t act as if you didn’t already know.

Cha-ching(Read More…)

By on July 17, 2018

Today’s Rare Ride is a special, sporty edition of a rather mundane Malaise subcompact. It hails from a time when the American customer matched the color of their vinyl seats to their wide lapel. So let’s delude ourselves for a few minutes with the Monza Mirage.

(Read More…)

By on January 7, 2018

pumping-gas fuel

Fueling prices and average economy aren’t exactly the sexiest of automotive topics, but they are the two that will probably influence your life the most directly in the coming year. Expensive gas thrusted countless Americans into economy cars during the early 1980s and 2000s, so any advanced warning would be useful to those considering a new vehicle this year.

Last month, crude prices surpassed $60 per barrel after weekly American output dipped and stockpiles fell. That’s the highest they’ve been in over two-years and, with OPEC cutting production and China hungrier for the black stuff than ever before, prices aren’t expected to drop anytime soon. Does that mean you should nix purchasing that big sport utility vehicle you’ve been eyeballing and option the greener alternative? (Read More…)

By on December 5, 2017

Image: 1977 Honda Civic CVCCWay back in the polyester era, there was a little thing called the Oil Crisis (circa 1973). And right about the time giant American barges were coughing and wheezing their way to the (empty) fuel station while managing eight miles per gallon, Honda had a little idea.

Say hello to the “Civic.”

(Read More…)

By on July 14, 2017

oil

Even though electric vehicles still only account for a sliver of the global market, Big Oil is beginning to take them seriously as a long-term threat to the industry. While preserving a finite resource is still probably the way to go, oil companies are accustomed to making money and have now begun revising their forecasts to account for accelerated EV adoption.

Companies like Exxon Mobil and BP are ratcheting up their outlooks for the technology, anticipating slowing oil demand, while OPEC has quintupled its forecast for sales of EVs in the coming years.   (Read More…)

By on August 23, 2015

Entrance_OPEC_Headquarter_Vienna

Iran’s oil minister has said that an emergency OPEC meeting may be necessary to stem the tide of slumping worldwide oil prices, Reuters is reporting. Algeria has also called for an emergency meeting.

A barrel of crude oil slid to its lowest price last week of around $40, the lowest in more than six years. Record low gas prices could closely follow, which would help American drivers and car buyers, however the broader economic impact may be tougher to discern. Worldwide markets sank on Friday, largely on fears that China would slow its economic growth and instability in Greece could hamper European economies.

(Read More…)

By on August 21, 2015

Ford Mustang Receiving Gas Circa April 2015

Break out the champagne and 7-liter engines. Have one on us, alright?

The Wall Street Journal and Reuters are reporting that despite a mild increase in crude, oil is hovering around $40 a barrel and it’s expected to further dip in coming months to a six-year low on a global glut of oil.

The national average for a gallon of gas could drop to as low as $2, Green Car Reports says, which would be the cheapest its been since January, and could approach historical lows from 2008.

(Read More…)

By on May 26, 2015

Sergeant Major Oil Well - Arnegard, North Dakota Circa July 2013

Despite OPEC’s desire to keep its stranglehold on the market, U.S. shale oil production looks to rise again amid a strengthening dollar.

(Read More…)

Recent Comments

  • Luke42: The F-150 will probably reach those specs with its plugin hybrid first. Ford is preparing hybrid, plugin...
  • Russycle: I test drove a Camry stick in 1996 or so. Couldn’t afford it, but it drove and shifted nicely. If you...
  • Luke42: I covet the Ridgeline, but I bought a less efficient 2010 GMC Sierra Hybrid. The used Sierra can tow more,...
  • sgeffe: So the whole pedal could bust off up under the dash, or would there be part of the stub left that you could...
  • volvo: The downside for me is the unnecessary expense of a “performance” car when all you need is to get...

New Car Research

Get a Free Dealer Quote

Who We Are

  • Matthew Guy
  • Timothy Cain
  • Adam Tonge
  • Bozi Tatarevic
  • Chris Tonn
  • Corey Lewis
  • Mark Baruth
  • Ronnie Schreiber