Saudis don't like the Iranian deal. Invading Yemen without UN approval. Unlawful act in itself. Practicing genocide from what I'll read. War crimes ahead? Should be. US support is going to get pretty thin.
This is what they were saying December 23, 2014:
Abu Dhabi - Arab Opec producers expect global oil prices to rebound to between $70 and $80 a barrel by the end of next year as a global economic recovery revives demand, Opec delegates said this week in the first indication of where the group expects oil markets to stabilise in the medium term.
The delegates, some of whom are from core Gulf Opec producing countries, said they may not see - and some may not even welcome now - a return to $100 any time soon. Once deemed a “fair” price by many major producers, $100 a barrel crude is encouraging too much new production from high cost producers outside the exporting group, some sources said.
But they believe that once the breakneck growth of high cost producers such as US shale patch slows and lower prices begin to stimulate demand, oil prices could begin finding a new equilibrium by the end of 2015 – even in the absence of any production cuts by Opec, something that has been repeatedly ruled out.
"The general thinking is that prices can’t collapse, prices can touch $60 or a bit lower for some months then come back to an acceptable level which is $80 a barrel, but probably after eight months to a year," one Gulf oil source told Reuters.
A separate Gulf Opec source said: "We have to wait and see. We don't see $100 for next year, unless there is a sudden supply disruption. But an average of $70 to $80 dollars for next year – yes.”
"Most of us in the industry are surprised that it's fallen as hard and fast as it has," Ryan Lance, CEO of ConocoPhillips, said at a Center for Strategic and International Studies. "I don't know that I have a real good answer to that question, other than it doesn't feel like the fundamentals would support that kind of fall."
Like Hofmeister, Lance said oil prices could rebound faster than anticipated, as they did in 2009, following the Great Recession.
"People were worried about the global economy, and prices went to $30, $40 a barrel, and just a matter of months later, it was back to $100 a barrel," he said. "And that's the kind of volatility we're in, when we see these imbalances that are created, even though they are relatively small in absolute terms."
FuelCell Energy Inc. rose on a $3.5 million effort to use its technology to convert methane-rich natural gas into methanol, a liquid fuel that’s easier to store and transport.
FuelCell climbed 9.5 percent to 81 cents a share at 1:10 p.m. in New York. Shares of the Danbury, Connecticut-based company have dropped 47 percent this year.
Scientists from the University of North Dakota will join a team of researchers from FuelCell working to produce methanol and other liquid fuels from natural gas with an electrochemical cell, according to a statement Friday from the university’s Energy & Environmental Research Center.
Methane, a greenhouse gas more potent than carbon dioxide, is mostly emitted from oil and natural gas wells, farms and landfills. Fuel cells could be located near these operations and convert methane to a useful liquid fuel instead of flaring it or letting it escape into the atmosphere.
"Hedge funds — under the Managed Money heading in the Commodity Futures Trading Commission (CFTC) weekly Commitments of Traders report — dumped 3,154 short contracts last week and added to their long positions by 3,526 contracts. The movement reflects changes as of the August 25 settlement date. Managed money holds 245,238 long positions, compared with 156,004 short positions. Hedge funds cut their short positions for just the second time in seven weeks and resumed their usual roles as oil bulls."
I used to live in a house that used fuel oil. Nasty stuff. Had storage tanks in the basement and had to monitor the level and order delivery. Didn't like those furnaces too. I was thrilled when my landlord replaced them with NG.
Oil companies are drilling the cheapest, easiest oil. It's going to become more costly in the future. The longer that oil stays cheap, the higher oil will go in the future.
Same to you and good luck with your hurricane. I lived in the Midwest most of my life. I couldn't take the cold winters, hot summers, tornadoes, and hail. Moved to the Seattle area. Much better weather.
Smart money has covered or in the process. Letting the dumb money to hold the short. Encouraged them all day with news and posts.
It has been reported that the missles are probably scud C from North Korea. In June it was reported that the Saudis were only able to shoot down 40% of the launched scuds.
Scuds can do a lot of damage:
Warhead Conventional high-explosive, Fragmentation, Nuclear 5 to 80 kiloton, Chemical VX warhead
180 km (110 mi) Scud A
300 km (190 mi) Scud B
550 km (340 mi) Scud C
700 km (430 mi) Scud D
Accuracy 3,000 m (9,800 ft) Scud A
450 m (1,480 ft) Scud B
700 m (2,300 ft) Scud C
50 m (160 ft) Scud D
Scud is a series of tactical ballistic missiles developed by the Soviet Union during the Cold War. It was exported widely to other countries, in particular third world countries. The term comes from the NATO reporting name Scud which was attached to the missile by Western intelligence agencies. The Russian names for the missile are the R-11 (the first version), R-17 and R-300 Elbrus (later developments). The name Scud has been widely used to refer to these missiles and the wide variety of derivative variants developed in other countries based on the Soviet design.