And there was much rejoicing in the land.... Gas Prices

[Sean88gt]

How do prices not bottom out when supplies are at all time highs?

[Denny]

How do prices not bottom out when supplies are at all time highs?

Speculation

[broke again]

Speculation

explain with regards to the current market price of oil? not being smart ass but would really like to hear a defensible position.

[Strychnine]

Citigroup is forecasting oil prices to fall toward $20 a barrel before recovering.

Fun!


T. Boone is predicting that we'll be back to $80-90/bbl sometime in the first half of 2016.

[Denny]

explain with regards to the current market price of oil? not being smart ass but would really like to hear a defensible position.

The Saudi-driven OPEC still has not given the indication that they are letting off the throttle. No telling how much oil ISIS is selling and at what price. Who knows what exactly it is for sure, but it is keeping people skeptical.

For sure, there's not a magic S/D formula.

[RabidJackal]

explain with regards to the current market price of oil? not being smart ass but would really like to hear a defensible position.

Pretty much anything that happens in an OPEC country will cause people to speculate that there may be an increase or decrease in supply/production.

That's exactly why the U.S. needs to get itself off of foreign oil sources so that the prices we pay aren't at the mercy of wild speculation that we've seen in the past.

[Sean88gt]

Speculation

I get that, but how long can speculators speculate driving the price up?

Oil/retail gas are greatly overvalued at their current levels.

[slow99]

Putting on a Dec'15 55 strike straddle.

[Denny]

I get that, but how long can speculators speculate driving the price up?

Oil/retail gas are greatly overvalued at their current levels.

You do know our military is helping Iraq prep to take back Mosul, right? That's going to be huge.

[broke again]

I get that, but how long can speculators speculate driving the price up?

Oil/retail gas are greatly overvalued at their current levels.

they cant. that is not a sustainable argument in the current climate.

[Denny]

Putting on a Dec'15 55 strike straddle.

You'll definitely get volatility from now until then.

[matts5.0]

they cant. that is not a sustainable argument in the current climate.

neither is the fed printing trillions of dollars, but they keep on, keeping on.

[slow99]

neither is the fed printing trillions of dollars, but they keep on, keeping on.

No, they don't.

[Strychnine]

US rig count -43 this week.

1267 total now.

[Strychnine]

Random fact of the day regarding the large generation gap in O&G:


"50 percent of today's 10 million oil and gas workers are eligible to retire in 2015."

- Daniel Heintzelman, GE Oil & Gas CEO