WTI Crude Falls to 12-Year Low at $26.14 per Barrel

[jpak]

Source: Bloomberg News

Oil tumbled to lowest level in more than 12 years as crude stockpiles at the delivery point for New York futures expanded to a record.

West Texas Intermediate futures dropped to $26.13 a barrel, breaking below the $26.19 low from January to reach the lowest since May 2003. Supplies at Cushing, Oklahoma, the biggest U.S. oil-storage hub, rose by 523,000 barrels to 64.7 million last week, according to government data. The site is considered full at 73 million barrels. The price difference between front-month WTI delivery and a month later was near the widest in five years.

"This is a hangover from yesterday’s Cushing data," said Bob Yawger, director of the futures division at Mizuho Securities USA in New York. "Global equities, currencies and bonds are being taken as negative demand indicators. We’re set to soon break the lows made last month and then $25 will be the big target."

Oil is down about 29 percent this year on speculation a global glut will persist as Iranian exports increase after the removal of sanctions and U.S. crude inventories remain swollen. U.S. stockpiles are more than 130 million barrels above the five-year average, even after dropping by 754,000 barrels, according to Energy Information Administration data.

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Read more: http://www.bloomberg.com/news/articles/2016-02-10/oil-holds-losses-near-3-week-low-amid-record-cushing-supplies

[yallerdawg]

1. It's the imminent destuction of the global economy!

Bring it on!

After 15 years, now I can finally afford to fill up BOTH gas tanks of '88 F-150!

Yee-haw!

Ready for the Zombie Apocalypse, now that Exxon Mobil and Saudi Arabia aren't gouging are asses for that mythical thing called 'profit'!

[closeupready]

2. Fine with me. The sooner we move to renewables and send the price lower, the better.

And stop sending money to people who finance Islamic fundamentalism.

[NickB79]

6. Except the price drop we're seeing isn't from renewable proliferation

The number of electric cars on the road is a fraction of a fraction of a percent, globally.

The drop in oil has actually caused oil consumption to INCREASE by several percent, which is bad news for fuel-efficient cars, hybrids and electric vehicles that could use wind and solar energy.

[notadmblnd]

3. Yet the price of gas went up here today.

[jpak]

4. It dropped 10 cents this week in Maine

:woo hoo:

[notadmblnd]

7. There is such a big spread now, it isn't funny

Lowest I saw the lat two days was 1.25, highest 1.69. The median price being 1.37.

[Submariner]

12. Big spread of 2.35 to 4.04 here

The cheapest gas at Costco Maui. The gas station lines are huge!

[ohnoyoudidnt]

13. As I understand it, stations charge about what they payed to fill.

With some exceptions like location, there isn't much profit in the gas. So if station A buys gas at 1.69 on Monday and the price drops on Tuesday when station B fills at $1.25, station A isn't going to drop their price and lose money.

[notadmblnd]

15. When I worked at a gas station, the manager drove around

and checked prices of other gas stations on Wednesdays about noon, and changed prices to the highest she saw.

[FailureToCommunicate]

5. Perfect time to tack on an increase in the gas taxes. And fix the distribution of collected $

http://www.cnn.com/2011/11/18/opinion/tsay-gordon-gas-tax-myths/

[meow2u3]

9. Price the near poor out of their vehicles

Great job advocating upping taxes on those who cannot afford to pay more for gas.

Low gas prices have been a godsend for the near poor, who might have a car but one that's older, higher mileage, and lower fuel economy because that's all they can afford. Advocating a sharp gas tax hike is tantamount to pricing the poor out of driving and forcing them to take public transportation where it's unreliable, such as a semirural area.

[FailureToCommunicate]

16. EVERYONE who drives has been able to pocket millions in fuel cost savings, even the "near poor"

and their 'clunky' cars.

I was not advocating a "sharp" increase anyway. You may not realize it, but there has been no increase in 20 years.

So, yes, to help save the planet, and keep you and me from dying on a collapsed bridge, I most certainly am advocating a slight gas tax increase.

The "near poor" benefit just as much from road safety as everyone else.

http://www.newyorker.com/business/currency/raise-the-gas-tax-already

[Herman4747]

17. What's so bad about the bus?

I don't even have a car! Heck, I have no driver's license either!
I know that my bicycle does no harm to future generations by causing air pollution and global warming, and permanently using up unrenewable resources. Can you say that about your means of travel?
The point of a rise in gas taxes is not to oppress the poor, but to discourage the return of SUVs.

[meow2u3]

18. The bus is bad if you live far from the city

Where I live, you can call it a bedroom community, where the bus runs only every hour during rush hour and every 2 hours otherwise, and then only until 6PM--and it doesn't run Sundays.

My doctor's office is nowhere near a bus stop because I live in a semirural area. Buses don't run in the sticks at all and very sporadically in commuter towns.

[elmac]

11. Agree, time for an increase

Sure, its added hardship on low income drivers but funds for fixing up these terrible roads are badly needed. Pay me now or pay me later.

[CountAllVotes]

8. Glad I never bought a new car!

Still driving the 2001 Honda.

[Wellstone ruled]

10. Our largest supplier of crude,Canada is selling

oil today at 15 dollars a barrel. Until a few major Hedges close out their long positions,we still have downward price pressure.

[johnlucas]

14. Let it keep dropping. They gouged us on price for over a decade straight

When Bush got in office those oil boys got away with murder.
Hiking those prices up beyond belief!
I don't care that the bottom is dropping out on the oil markets.
It allows me to save money easier instead of wasting it in a gas tank.
And it balances out that robbery that went on since the decade of the 2000s.

Finding a new RENEWABLE energy source will solve so many problems including this perpetual warfare in West Asia.
In the meantime I wanna see that price dropped back below a $1.00 before it's all said & done.
I already see $1.50 in my region now.
KEEP DROPPIN'!

John Lucas