01-08-2015, 10:45 PM
If the price falls past $39 a barrel, we could see it go as low as $30 a barrel, said Walter Zimmerman, chief technical strategist for United-ICAP in Jersey City, New Jersey, who projected the 2014 drop.
How $50 Oil Changes Almost Everything - Bloomberg
As a war of nerves between U.S. shale producers and Gulf powerhouses intensifies, OPEC's biggest members are counting down the months until their upstart rivals lose the one thing shielding them from crashing oil prices - hedges.
Revamped US oil hedges may test OPEC's patience
The Energy Information Administration on Wednesday reported that U.S. gasoline stocks rose by 8.1 million barrels last week, compared with expectations for a 3.4 million barrel build. Distillate stocks, including diesel fuel and heating oil, rose by 11.2 million barrels, more than five times the amount expected.
As a result, Keystone has attained tremendous symbolic importance for both Democrats and Republicans. But this is the opposite of how it should be — the political fight has become completely divorced from reality. The pipeline’s actual importance to oil markets, the economy and the environment has steadily diminished. Whoever wins, the “victory” will be pointless and hollow.
Why the Fight Over the Keystone Pipeline is Completely Divorced From Reality - Bloomberg Politics
On Monday, oil fell below $50 a barrel. But even plunging prices won’t halt oil sands development, at least not for many years. Although costlier to produce because it requires more energy and water (causing greater carbon emissions), oil from tar sands is actually less price sensitive than other forms of crude. That’s because the cost structure is more akin to mining than convention oil drilling, as Bloomberg Businessweek’s Matthew Philips has noted. Oil sands operations require a large up-front investment, but they operate cheaply for many years thereafter.
Why the Fight Over the Keystone Pipeline is Completely Divorced From Reality - Bloomberg Politics
Expect oil to fall to around $40, possibly plummet to $33, and about 200 more rigs to shut down, energy expert John Kilduff told CNBC on Tuesday. U.S. crude closed down at $47.93 a barrel on Tuesday, the lowest since April 2009. "Right now, on a long-term chart, I see around $40-$42 as a base. If that gets taken out, we're going back to that 2009 low, that $33 print," Kilduff, founder of Again Capital and a CNBC contributor, said in an interview with "Street Signs."