Oil Price Watch Thread

User avatar
Yuli Ban
Posts: 4631
Joined: Sun May 16, 2021 4:44 pm

Oil Price Watch Thread

Post by Yuli Ban »

Oil drops 13% in worst day of 2021, breaks below $70 as new Covid variant sparks global demand concerns
Oil posted its worst day of the year on Friday, tumbling to the lowest level in more than two months as the new Covid-19 strain sparked fears about a demand slowdown just as supply increases.

The leg lower came amid a broad sell-off in the market with the Dow dropping more than 900 points. The World Health Organization warned Thursday of a new Covid variant detected in South Africa. It could be more resistant to vaccines thanks to its mutations, although the WHO said further investigation is needed.

U.S. oil settled 13.06%, or $10.24, lower at $68.15 per barrel, falling below the key $70 level. It was the contract’s worst day since April 2020. WTI also closed below its 200-day moving average — a key technical indicator — for the first time since November 2020.

International benchmark Brent crude futures slid 11.55% to settle at $72.72 per barrel.
And remember my friend, future events such as these will affect you in the future
User avatar
Yuli Ban
Posts: 4631
Joined: Sun May 16, 2021 4:44 pm

Re: Oil Price Watch Thread

Post by Yuli Ban »

And remember my friend, future events such as these will affect you in the future
User avatar
caltrek
Posts: 6509
Joined: Mon May 17, 2021 1:17 pm

Re: Oil Price Watch Thread

Post by caltrek »

What a difference seven months can make.

Item: WTI Crude as of Jun 10, 2022 at 1:27 p.m. EDT was $120.38. Source: https://www.marketwatch.com/investing/f ... electronic

Item:
National Average Gas Price on the Cusp of Crossing $5
by Matt Phillips
June 10, 2022

Introduction:
(Axios) Gasoline prices are about a cent shy of the never-before-seen national average level of $5 a gallon, and it's unclear how Americans — and the economy — will react.

Why it matters: Prices at the pump play an outsized role in the minds of Americans and are often seen as harbingers for everything from plummeting presidential approval ratings to ugly recessions.

Driving the news: The daily U.S. average national price for a gallon of regular climbed to $4.99 as of Thursday morning, according to AAA.
  • And surging prices in the wholesale futures markets — which are leading indicators of retail prices — suggest there's little hope for near-term relief.
State of play: Setting aside the brief, unique COVID recession of 2020, 10 of the 11 recessions the U.S. has experienced since World War II have been preceded by a sharp rise in energy prices.
Read more here: https://www.axios.com/2022/06/10/gas-pr ... e-5-gallon
Don't mourn, organize.

-Joe Hill
User avatar
caltrek
Posts: 6509
Joined: Mon May 17, 2021 1:17 pm

Re: Oil Price Watch Thread

Post by caltrek »

The Biggest Myths About Gas Prices
by Rebecca Leber
June 27, 2022

Introduction:
(Vox) Gas prices are still climbing, and President Joe Biden has nothing but bad options.

Last week, Biden called on Congress to suspend the federal gas tax for three months — a move that would lower gas prices by 18 cents per gallon. But the proposal for a gas tax holiday already looks to be dead. Republicans have remained firmly opposed, arguing the real problem is Biden’s climate agenda, and Democrats have also called it “shortsighted” to redirect the money away from roads.

That leaves Biden with just the limited powers of the bully pulpit to make a difference in costs. On Thursday, he used it to bring oil executives to the White House to meet with Energy Secretary Jennifer Granholm, after weeks of accusations that they are ripping off consumers.

The US would be a very different kind of economy if the president could simply turn on and off the faucet for oil. But by design, oil is a free and global market, one that in recent years has been shaped by a decade of low profit margins, turmoil from the pandemic, and Russia’s war on Ukraine. In March, I wrote about what to make of the political theater surrounding gas prices. The list of myths is getting longer as prices climb past $5 a gallon.

Myth 1: Federal and state gas tax holidays are the answer…
Myth 2: Oil companies are price-gouging American consumers…
Myth 3: Biden killed oil production…
Myth 4: The oil and gas industry can quickly ramp up production to make a dent in prices…
Myth 5: LNG exports will fix Europe’s problems and help US gas prices…
Myth 6: The economy is doomed because of high gas prices...
Read more here: https://www.vox.com/23169692/myths-gas ... inflation

caltrek’s comment: I am not sure I agree that No. 2 is a myth. The argument seems to be that oil companies are just charging what the market will bear. To me, that just says that the market will now bear price gouging. Perhaps it is just a matter of semantics, as consumers clearly suffer no matter how you argue that point.
Last edited by caltrek on Tue Jun 28, 2022 1:43 pm, edited 1 time in total.
Don't mourn, organize.

-Joe Hill
User avatar
caltrek
Posts: 6509
Joined: Mon May 17, 2021 1:17 pm

Re: Oil Price Watch Thread

Post by caltrek »

G7 Leaders Pledge to Pursue Price Caps on Russian Oil
by Ivana Siric
June 28, 2022

Introduction:
(Axios) Members of the G7 on Tuesday agreed to explore the possibility of imposing price caps on Russian oil as they reiterated vows to "impose severe and immediate economic costs" on Russia amid its ongoing war in Ukraine.

Why it matters: Russia is the world's second-largest crude oil exporter and Europe, unlike the U.S., is hugely reliant on Russian oil, gas and coal, Axios' Ben Geman writes.

• While the sanctions imposed on Russia in the wake of its invasion of Ukraine have been severe, the country has nevertheless been able to continue selling oil.

State of play: The G7 leaders said they would consider a "range of approaches" when it comes to Russian oil, according to the leaders' communique.

• Among these approaches will be the possibility to ban all transport of Russian oil "unless the oil is purchased at or below a price to be agreed in consultation with international partners," the G7 leaders said in the communique.

• "We invite all likeminded countries to consider joining us in our actions," they added, noting that they have tasked their relevant ministers with further exploring the details of such a move.
Read more here: https://www.axios.com/2022/06/28/g7-ru ... price-cap
Don't mourn, organize.

-Joe Hill
User avatar
caltrek
Posts: 6509
Joined: Mon May 17, 2021 1:17 pm

Re: Oil Price Watch Thread

Post by caltrek »

'The Problem is Corporate Greed, Boss': Bezos Blasted for Defense of Big Oil Price-Gouging
by John Queally
July 4, 2022

Introduction:
(Common Dream) Progressives ripped billionaire Jeff Bezos for his latest defense of corporate profiteering over the weekend in which the Amazon founder and world's second-richest person criticized a call by President Joe Biden for oil companies to lower the price of gasoline.

On Saturday, Bezos accused President Joe Biden of "misdirection" and ignorance "of basic market dynamic" in response to a tweet from the president which called on companies setting gasoline prices to "bring down the price you are charging."

While Bezos' comment sparked a sharp response from White House press secretary Karine Jean-Pierre—who said pump prices remaining constant despite a steep drop in crude oil prices isn't "basic market dynamics" but rather "a market that is failing the American consumer"—progressive critics also jumped into the fray.

Warren Gunnels, a longtime aide of Sen. Bernie Sanders and who currently serves as the Majority Staff Director for the U.S. Senate Budget Committee, responded to the back-and-forth between the White House and Bezos by offering a comparative rundown between the current price of gasoline and what it was in 2014:
Read more here: https://www.commondreams.org/news/2022 ... e-gouging
Don't mourn, organize.

-Joe Hill
User avatar
caltrek
Posts: 6509
Joined: Mon May 17, 2021 1:17 pm

Re: Oil Price Watch Thread

Post by caltrek »

Gas Prices Keep falling
by Madeleine Ngo
July 22, 2022

Introduction:
(Vox) Drivers have seen it at the pump, and Biden administration officials have repeatedly touted it in recent days: Gas prices are dropping, and they have been for weeks.

Although the decline in prices is a welcome reprieve for Americans whose budgets have been strained by higher costs for nearly everything, it’s reasonable to ask: Will this last?

Gas prices are averaging $4.41 a gallon across the country as of July 22, according to the American Automobile Association, down from last month’s peak of more than $5 a gallon. Although gas prices have been falling for more than 30 days straight, the national average is still substantially higher than a year ago, when prices averaged $3.16 a gallon, according to AAA data. Diesel prices are also averaging $5.46 a gallon as of July 22, down from $5.81 a month ago.

Rising gas prices have been a major driver of inflation. A government report released last week showed that an increase in energy prices fueled a big jump in inflation in June, when the Consumer Price Index rose 9.1 percent from a year earlier, a new four-decade high. Gas prices soared after demand for oil rebounded from pandemic lows and Russia’s invasion of Ukraine drove up oil prices.

Several factors have pushed gas prices down, including a drop in oil prices as recession fears grow and a smaller-than-expected impact from Western sanctions on Russia. Supply has also improved relative to demand, which has slightly fallen in recent weeks and remains at levels lower than a year ago, according to data from the US Energy Information Administration.
The article goes on to discuss four factors that will determine if gas prices continue to fall or rise again this year.

Read more here: https://www.vox.com/2022/7/22/2327145 ... nflation
Don't mourn, organize.

-Joe Hill
User avatar
caltrek
Posts: 6509
Joined: Mon May 17, 2021 1:17 pm

Re: Oil Price Watch Thread

Post by caltrek »

Big Oil Quick to Jack Up Gasoline Prices But Slow to Drop Them
by Kenny Stancil
July 25, 2022

Introduction:
(Common Dreams) Over the past four months, Big Oil has rushed to raise gasoline prices—sometimes charging far more at the pump than the increased cost of oil would warrant—and dawdled to lower them when crude's valuation declined, according to a new analysis released Monday by the progressive watchdog group Accountable.US.

Accountable.US acknowledges that the cost of oil plays an important role in determining the price of retail gas. But to understand why prices at the pump have outpaced the escalating cost of crude and why, when the cost of crude has fallen temporarily during the last 12 weeks, savings have very slowly—and only partially—been passed on to consumers, the group says look no further than fossil fuel corporations' desire to maximize profit margins.

"For months, oil and gas companies have price gouged consumers, squeezing record-breaking profits out of Americans and forcing many into dire financial straits," Jordan Schreiber, director of Energy and Environment at Accountable.US, said in a statement.

"When the price of crude oil increased, consumers were immediately forced to shoulder the high cost and more," said Schreiber. "Now, as crude oil prices fall, the industry needlessly drags its feet by lowering gas prices at a significantly slower rate than when they increased."
Read more here: https://www.commondreams.org/news/2022 ... -analysis
Don't mourn, organize.

-Joe Hill
User avatar
caltrek
Posts: 6509
Joined: Mon May 17, 2021 1:17 pm

Re: Oil Price Watch Thread

Post by caltrek »

Corporate Media Fails to Connect Gas Price Surge and Climate Crisis
by Olivia Riggio
July 30, 2022

Introduction:
(Common Dreams) Gas prices hit an all-time high in June, with the national average surpassing $5 per gallon. A shortage of Russian oil due to sanctions imposed by the European Union, United States and others is largely to blame, and in response President Biden has urged US oil companies and other producers—like Saudi Arabia and the United Arab Emirates—to increase their production to fill the gap.

It's a move completely inimical to Biden's stated commitment to tackling the climate emergency and shifting to renewable energy, made all the more striking as temperatures surpass records in India, Pakistan, Europe, and the Southwest and Central US. Yet the obvious climate angle of the gas price story was rendered virtually invisible by corporate media.

A FAIR study of nightly news shows found a dearth of segments connecting the record gas prices to any climate or alternative energy conversation.
This silence perpetuates inaction that poses climate solutions as lofty, unattainable pipe dreams, and suggests the only mitigation for fuel shortages is relentlessly drilling more of this harmful and nonrenewable resource.
Read more here: https://www.commondreams.org/views/202 ... te-crisis
Don't mourn, organize.

-Joe Hill
User avatar
caltrek
Posts: 6509
Joined: Mon May 17, 2021 1:17 pm

Re: Oil Price Watch Thread

Post by caltrek »

Oil Companies are Delivering Record Returns for Wall Street. That Could be Good News for Climate Change.
by Eric Gardner
August 18, 2022

Introduction:
(More Perfect Union) ExxonMobil and Chevron delivered record-shattering profits last quarter, returns that financial news outlet Bloomberg described as ”almost comically huge.” Exxon, the world’s largest non-state energy company, posted $18.5 billion in profit, while Chevron, the nation’s second largest energy company, delivered $11.6 billion.

Even more notable is what oil companies are doing with their profits. Surprisingly, it may be very good news for climate change.

Broadly speaking, executives can use company profits in two ways. They can redistribute the profits to shareholders or reinvest the profits back into the business. In 2014, Chevron and Exxon reinvested over $68 billion through capital expenditures (CapEx). CapEx includes building new oil wells and repairing outdated refineries–both things that increase fossil fuel consumption.

This year America’s two oil giants are on pace to invest around $20 billion in CapEx—a decline of over 67% in less than a decade. Instead, management is focused on transferring as much profit as possible to shareholders. In Q2, rather than invest in future oil capacity, Chevron and Exxon showered investors with $6.7 billion in dividend payments and made promises of $30 billion worth of stock repurchases in the next few years. Right now the companies have already spent more on dividends than they did for all of 2014.

This development should be viewed as what it is: a market-based transition to clean energy.
Read more here: https://perfectunion.us/oil-companies- ... e-change/
Don't mourn, organize.

-Joe Hill
Post Reply