Falling oil prices....really the work of the Saudis?

[Viking]

Do you mean the Iran nuke talks are going well?  I've read they're dead.

I think the talks are basically that Iran will get nukes, just a matter of how long they're willing to be stalled on it, or how long to talk us to distraction on the issue while they proceed.

I think the question is if the Nukes the Iranians get will be of Israeli or Iranian design.

[Jacob]

Do you mean the Iran nuke talks are going well?  I've read they're dead.

I think the talks are basically that Iran will get nukes, just a matter of how long they're willing to be stalled on it, or how long to talk us to distraction on the issue while they proceed.

I think the question is if the Nukes the Iranians get will be of Israeli or Iranian design.

And whether they'll be built locally or delivered armed and at high velocity?

[Viking]

Do you mean the Iran nuke talks are going well?  I've read they're dead.

I think the talks are basically that Iran will get nukes, just a matter of how long they're willing to be stalled on it, or how long to talk us to distraction on the issue while they proceed.

I think the question is if the Nukes the Iranians get will be of Israeli or Iranian design.

And whether they'll be built locally or delivered armed and at high velocity?

Precisely.

[Ed Anger]

Gas was 2.19/gal today. So I filled a kiddie pool with it and bathed in it.

[The Brain]

You sound depressed.

[Ed Anger]

I don't listen to my body

[Eddie Teach]

Gas was 2.19/gal today. So I filled a kiddie pool with it and bathed in it.

Careful.
https://www.youtube.com/watch?v=3Huc47Dqsg8

[Sheilbh]

Do you mean the Iran nuke talks are going well?  I've read they're dead.

Yeah. Where'd you hear they were dead?

Incidentally I was drinking with a friend today and as he's an oil analyst I asked for his perspective.

He said the big reason is supply and demand. Libya's oil is back online and Iraq's is holding up far better than anyone expected, in addition to that there's booming shale production which means there's a lot of supply. In terms of demand there's been a slack for a while (China's slowing, the Eurozone is more bondage club than economic union and until recently US growth has been a bit hit-and-miss). This has been covered by countries like the US and China filling up their strategic reserves - they're both now apparently full, so that bit of demand has just vanished. In addition there've been various efficiency savings while oil prices were high - fuel efficiency on vehicles, using gas for some chemical processing. He compared it to the efficiencies made in the 70s which under-pinned low oil prices through the 80s even though there were a few boom years.

Then you get to OPEC. Basically there's a split between countries like Iraq and Libya that just need to produce as much as they can to pay for anything and try and save their countries, and countries like Venezuela, Iran and Nigeria who need to keep the price as high as possible. Trouble is none of the latter group are actually willing to cut their own production because they need the money and, even if they did, it wouldn't move the market that much. So it falls to the Saudis. The Saudis aren't necessarily trying to kill shale off, or to kill Russia off (though those are nice benefits) but they've got the reserves and the cash to sit through low prices for a while in an attempt to preserve their market share.

He also said, so far, no-one's entirely sure how long it'll last so a few future projects are being shelved especially the more expensive ones - mature fields in the North Sea (again the SNP would be fucked if they'd won) and, say, Arctic exploration. If it lasts it'll start having a bigger effect.

[The Brain]

Define oil analyst.

[CountDeMoney]

[Josephus]

As a commuter, of course, this short term gain makes me happy.
As one who has 60 per cent of his mutual funds in Canadian energy.....not so much.

[Barrister]

Gas is down to $0.75 per litre.  It must have been the 1990s when it was last this cheap at the pump.

[Crazy_Ivan80]

Gas is down to $0.75 per litre.  It must have been the 1990s when it was last this cheap at the pump.

still above 1.05€ (cheapest) and close to 1.2€ for highest official prices. Thank god the green and red communists aren't in power atm or there wouldn't have been a drop at all

[celedhring]

1.125/l at the nearest gas station. That's really cheap for our standards.

[Maximus]

Gas is down to $0.75 per litre.  It must have been the 1990s when it was last this cheap at the pump.

Early 90s at least. I was travelling through Edmonton fairly regularly in 93-94 and I only recall it dipping below $1 once during a price war.