Oil price slumps to lowest level in more than 6 years

[Omaha Steve]

Source: AP

By ALEX VEIGA

The price of U.S. crude oil has tumbled to its lowest level in more than six years.

The latest slide on Tuesday came as OPEC said its production rose to a three-year high. China also devalued its currency, suggesting economic growth there was softer and could cause lower crude demand.

Benchmark U.S. crude fell $1.88, or 4 percent, to $43.08 a barrel in New York. Its previous low for this year was $43.46 on March 17.

U.S. crude has been declining since reaching a high this year of $61.43 a barrel on June 10.

Read more: http://bigstory.ap.org/article/2b2a6c252d1143d2ae928515ee9e2ceb/oil-price-slumps-lowest-level-more-6-years

[Demeter]

1. Which makes today's 30 cent jump in gasoline VERY suspicious

Somebody blow up a refinery, or something? What's the latest excuse for price gouging?

[louis-t]

2. Someone farted in Nigeria.

That's always my reply. Oh wait, holiday coming. Gouge, gouge, gouge....

[Roland99]

4. just about....

Gas Buddy: Refinery problems to drive fuel prices higher
http://www.wsbt.com/news/local/Gas-Buddy-Refinery-problems-to-drive-fuel-prices-higher/34652334

Get ready to fork over more money at the pump. Gas Buddy says refinery problems over the weekend at BP's Whiting, Indiana refinery are likely to drive up gas prices.

You can expect to pay 15 to 30 cents more per gallon during the next week in the Midwest and Great Lakes area.

not that this helps you but holding steady at $2.29 here

[Omaha Steve]

5. They will blame the down time on lack of maintenance during the strike

Finger pointing at the union.

[Demeter]

10. Hey, Roland! Long time, no see! Thanks for the post

That's the standard excuse when there's no major holiday in sight.

[Roland99]

15. I have no doubt it's something orchestrated

just before the switch to non-reformulated fall/winter gas!



And how ya been? Try poking into SMW once in a while. Noticed the Euro has dropped a LOT! Even from my last trip over there back in January!

[Demeter]

16. Still kicking

as the Black Knight says, it's only a flesh wound.

We've had scads of background and analysis on Greece and other things. It's like drinking from a fire hose.

[jamzrockz]

3. OPEC is a cartel

and they are still raising production while gas prices are at a 6 yr low (could be even worse when adjusted for inflation). I really wonder if this fight to take Russia down is really worth the pain these less affluent OPEC members are going through.

Can't wait for the low price to show up in pump price, cos local gas just went up a few cents from yesterday

[Demeter]

11. They are trying to take down American fracking

Since the salutary effects of 9/11, associated with the late king, have worn off, the new one wants to jerk the leash a little.

Rumor has it, he's too little, too late. And then, there's the whole Yemen and Syria and Libya messes...

[Adrahil]

13. Right answer.

Which I have very mixed feelings about.

[MosheFeingold]

14. Correct

It's an artificial bubble targeted at Texas/North Dakota shale plays and Russia.

It's made worse domestically and the refiners are making out like bandits because they get to buy cheap crude and EXPORT the refined products, while the producers of crude cannot export crude to keep the refiners honest.

I'd normally not be a fan of removing the crude export ban, but if you are going to let refiners export, you need to let everyone export.

And, of course, the Republicans won't add the refineries to the ban.

A huge amount of taxes and straight federal/state income (because a lot of states own a large amount of the minerals, as does the federal government in my adopted home state of New Mexico) is based on these royalties, so its kind of screwing things up.

[truthisfreedom]

6. Blame Obama!

Thanks a lot, Obama!

[cstanleytech]

7. Meh, I wont celebrate until I start hearing of dozens of oil speculators jumping off buildings.

[underthematrix]

8. This news always makes me smile

[Obama Legacy]

9. Just Wait...

Til the Iran deal is finalized. Then we'll see a nice drop at the pump.

[BumRushDaShow]

12. Brent Crude was @ $49.38

at last check. That's the one that they like to use for the pump pricing due to it being the light, sweet oil that many of our refineries are set up for processing. Meanwhile around the Philly area, like any "drop", it comes extremely slow but guarantee that if crude shot up, it would happen instantly at the pump. I expect the announcement at any time for a switch to the "winter blend" in order to blow any fractional price drop outta the water.