Thread: Oil Slick Stuff

E10 down to $1.79.9 in Boiled Peanut GA>

Last week we got as low as $1.97 around me. Then Monday it jumped up to $2.29. This morning a few stations are down to $2.09.

OPEC Export Price Falls Below $40 for First Time Since 2009

Grant Smith


November 16, 2015 — 8:53 AM EST

• Average price of crude sold by OPEC's members falls to $39.21
• Low prices hurting OPEC members as well as rivals: Petromatrix

The average price of crude sold by OPEC fell below $40 a barrel for the first time 2009, underscoring the financial cost of the group’s strategy to defend its market share.
The daily OPEC Basket Price fell to $39.21 a barrel on Nov. 13, according to an e-mail on Monday from the organization’s secretariat in Vienna. The basket, an average of export grades from each of the group’s 12 members, typically trades below international oil futures as some OPEC nations pump denser or higher-sulfur crude that’s less profitable to refine.
Oil has slumped since the middle of last year as the Organization of Petroleum Countries keeps output elevated to pressure rivals it sees as responsible for creating a global surplus. A decline in production among its higher-cost competitors including U.S. shale drillers has now slowed, with output still above last year’s level. With OPEC members’ revenues diminished, the group may reconsider its approach if the price slump persists, according to the International Energy Agency.
Low oil prices aren’t just problematic for higher-cost producers, said Olivier Jakob, managing director at consultants Petromatrix GmbH in Zug, Switzerland. “It is also providing a challenging fiscal environment” for OPEC nations, he said.
OPEC’s annual revenues may be curbed to $550 billion at current prices from an average of more than $1 trillion in the last five years, Fatih Birol, executive director at the IEA, said in London on Nov. 10. Even Saudi Arabia, the group’s biggest member, faces a budget deficit this year that the International Monetary Fund predicts will exceed 20 percent of gross domestic product.[more]
OPEC Export Price Falls Below $40 for First Time Since 2009 - Bloomberg Business

Saw gas at $1.96 this morning. Expecting a 50 cent jump soon.

Averaging $1.78 around here.

E10 (87) - $1.91 per gallon
Non-Ethanol (87) - $2.23 per gallon

There is this one intersection I drive past every morning that has a gas station on three of the four corners. A Sunoco, a Shell and a BP. The gas prices for 87 octane were $1.66 at Sunoco, a $1.77 at Shell and a $1.89 at BP. Why would you even stop at BP for gas at this intersection? But there were people pumping gas this morning at the BP station.

Some folks think more expensive gasoline is of better quality.

E10 at $1.71 in my neck of the woods.

EIA Petroleum Status Report

Released On 11/25/2015 10:30:00 AM For wk11/20, 2015

Economic Calendar - Bloomberg Prior Actual Crude oil inventories (weekly change) 0.3 M barrels 1.0 M barrels Gasoline (weekly change) 1.0 M barrels 2.5 M barrels Distillates (weekly change) -0.8 M barrels 1.0 M barrels

Oil plunges toward a 7-year low

Published: Dec 7, 2015 10:50 a.m. ET

Oil futures continued to plunge Monday, poised to mark their lowest settlement in nearly 7 years, in the aftermath of the Organization of the Petroleum Exporting Countries’s decision last week to keep crude production running at current levels.
January West Texas Intermediate crude CLF6, -4.30% dropped $1.83, or 4.6%, to $38.16 a barrel on the New York Mercantile Exchange, after suffering a loss of 4.2% last week. Prices briefly dropped below $38 in early U.S. trade.
January Brent crude LCOF6, -3.67% fell $1.56, or 3.6%, to $41.44 a barrel on London’s ICE Futures exchange. It also fell about 4.2% last week.

WTI and Brent prices haven’t settled at levels this low since February 2009, based on the most-active contracts.
On Friday, WTI crude settled 2.7% lower while Brent futures lost 1.9% after OPEC, at its meeting in Vienna, agreed to maintain a ceiling that reflects “current actual production” even as the market struggles with oversupply. The cartel’s members didn’t see the need to specify a production target, OPEC President Ibe Kachikwu said Friday.
“Unfortunately, the meeting just restates that OPEC is stuck to their strategy of protecting market share,” said Luana Siegfried, energy analyst at Raymond James. The decision “most likely will keep a lid on crude prices as the supply side of the supply/demand curve ... will remain glutted, not being totally absorbed by weak demand.”[more]
Oil plunges toward a 7-year low - MarketWatch