Any thoughts on oil prices?

[malba2366]

I think Oil prices will stay between $70 and 80 because this is where the Saudis want it. They are the only ones in the world that have the capacity to turn on and off capacity (their oil is easily accessible, their oil fields are paid for and they haven't been foolish enough to allow themselves to become dependent on $100/bl oil). The Saudis make money at these prices, and it discourages investment in deep ocean drilling and shale oil/tar sands projects in North America.

Besides the obvious, cheap oil has benefits in that it limits oil profits from rogue states such as Iran (and Russia); and also what ISIS can make off their black market oil.

[Arkay]

Full-on market manipulation, if you ask me.

I still keep some oil shares in my portfolio (alongside gold) as a hedge against falling stock market.

It's Halliburton and Cheney's fault----

[OleOle]

I've been pleased to add to my BP holdings at this low ebb, want to bite on some XOM to but also hoping that prices fall further and I've a Blackrock oil ETF that's been added to in this downturn. OPEC seems fragmented, I cannot see any deal that limits production (but who knows?) so I'm hanging fire - almost everything looks undervalued but my sense is that prices will fall further, so I'm keeping my powder dry for the next couple of weeks, perhaps a month. It's a long shot, but if the northern hemisphere winter is particularly harsh, we could see an upward spike, however I'm more inclined to think the bears will have the upper hand over the next few months which is ideal as there are a number of names that I need to initiate position on, OXY, NOV, HAL, XOM, RDS and others. I think that caution will be the order of the day, Seadrill's suspension of dividend is a harbinger of things to come for some more specialised firms but on the whole I'm thinking that integrated oil majors look historically attractive and are likely to become more so; as usual in these situations, it's almost impossible to pick the bottom, so dive in when you think the time is right and add to your holdings as the situation plays out.

Disclaimer: this is my personal view, do your own due diligence... preferably while you're enjoying a fine Cuban cigar

[tmac77]

OPEC meeting today was not good for oil prices. They will keep production up in their effort to squeeze out US Fracking oil interests and other higher price point extraction methods. Horrible news for Venezuela and in turn the Cuban economy.

[LLC]

OPEC meeting today was not good for oil prices. They will keep production up in their effort to squeeze out US Fracking oil interests and other higher price point extraction methods. Horrible news for Venezuela and in turn the Cuban economy.

I agree this is very bad for Venezuela and in turn for Cuba.

[pbibby]

I personally will be adding to my oil holdings. Might ****** up some BP (if prices fall further) and will continue adding HAL if prices continue to drop.

[emr]

I personally do not think it get worse at least until the end of winter. Indeed the political frustration with Russia plays a huge role and maybe this plan will benefit Saudis to kick the competitors with expensive oil out but this is the side benefit of the bigger plan which US has pursuing. Saudis do not do anything without US' approval; they are smarter than what we think and they have learned their lesson late 1970s from Iran's disobedience. Mind you low oil price is not benefiting anyone here.

[bradbrennan]

Are we getting close to the bottom?!

[headstand]

Are we getting close to the bottom?!

I can't see bottom. Glad the humidor is well stocked. It will be some time before oil goes back up to cigar buying territory. Humbug!

[shlomo]

$1.12 / liter here. Still too fracking high!

But better than the $1.49 we had in the summer...

[tmac77]

95 cents a litre here Shlomo

[headstand]

I'm 9 hours from Calgary and I'm paying $1.19

It's a conspiracy

[rckymtn22]

Paid 88.9/l today!

[ZinZan]

What a great time to join the O&G industry. I got this knack of joining industry at the wrong time. I dont think the bottom anywhere in sight, read somewhere Saudi's cost is $5-6 a barrel. Ridiculously cheap. I think like somebody rightly pointed out, the small players are getting pushed out. Ah well let see what next year brings, if this goes on its gonna be a big recession in Malaysia.

[shlomo]

95 cents a litre here Shlomo

At least our beer is cheaper....lol

[jjdolphin]

Simple.

Economic war on Russia because of Ukraine, Crimea...etc

Saudi Arabia does not just make decisions without US directive.

The West is putting pressure on any country that is close to Russia or has any ideas of dealing with them.

Russia's Southstream pipeline thwarted by Europe because it competed with the EU sponsored Nabucco pipeline.

Only reason Russia survived during the 90s was oil price increases.

Russia's fault for relying on oil primarily and not building a modern industrial state. They should look at Norway and see what a smart country does with oil reserves.

[nick2021]

Dunno what's going to happen, but down here in south Texas there's a LOT of fracking/oil companies out here. Several years ago there was nobody. Amazed at what I've seen happen since then in this state...

[AbuAmelia]

Paying $2.85 a gallon and loving it!!

[paulF]

Simple.

Economic war on Russia because of Ukraine, Crimea...etc

Saudi Arabia does not just make decisions without US directive.

The West is putting pressure on any country that is close to Russia or has any ideas of dealing with them.

Russia's Southstream pipeline thwarted by Europe because it competed with the EU sponsored Nabucco pipeline.

Only reason Russia survived during the 90s was oil price increases.

Russia's fault for relying on oil primarily and not building a modern industrial state. They should look at Norway and see what a smart country does with oil reserves.

Russia has built up pretty good reserves from the good times(high oil prices) so their economy won't crash anytime soon and also they don't import much so their economy will hurt bad but not as much as Venezuela, brazil or the Ukraine for example who is in need of 15Billion in emergency funds and i don't think the EU will be providing that...

Here's the funny part, after putting sanctions on Russia, the EU is asking them not to call on Ukraine's debt!!! Arrogance too much!!!?

[Fosgate]

This was on earlier today. Interesting take showing they may be targeting the competition of fracking but is only showing more need for oil independence.

http://video.foxnews.com/v/3945680706001/lower-oil-prices-pose-trouble-for-fracking/?#sp=show-clips

[earthson]

Dunno what's going to happen, but down here in south Texas there's a LOT of fracking/oil companies out here. Several years ago there was nobody. Amazed at what I've seen happen since then in this state...

What we're seeing is the end of easy oil/natural gas. Since all of the easy-to-get stores were exhausted a little more than 10 years ago, we are going to see - in our lifetimes - the end of oil and natural gas as energy sources. Fracking is expensive (and will get more so after the class actions due to contaminated water wells get up and running.) It is the last ditch effort by companies which see the writing on the wall.

A friend works in administration for Shell and apparently Shell is trying to develop new energy technologies and get them to market before their competitors do. Internally, my friend has been told that oil is done and there are only enough reserves, tar sands, etc to turn a profit for another 15 years MAX.

Yeah the non-renewable energy market is looking good now, but odds are there's a plunge on deck.

[ChanceSchmerr]

From a cigars point of view - low oil price is killing the Canadian Dollar against the USD ( I'm still paid in CAD, even though living in the UK), which means that my online cigar purchases have ceased, since most online cigar prices are pegged to the USD....

[CaptainQuintero]

Not sure if its entirely because of anti Russian policies because of the Ukraine or its a result of the Sino-Russo plan agreed to start selling and buying oil between them in currency that is not the USD. Probably both. The really desired result is the same. Cripple the Russian economy.

It's not as simple either way, Europe needs Russian energy. Russia can stumble on even with turning off the taps to the EU and get a result that they want.

Whatever international chess game is being played Putin is dozens of moves ahead of the western players. I'm not sure the Western leaders even know what game they are playing.

[earthson]

It's not as simple either way, Europe needs Russian energy. Russia can stumble on even with turning off the taps to the EU and get a result that they want.

Whatever international chess game is being played Putin is dozens of moves ahead of the western players. I'm not sure the Western leaders even know what game they are playing.

This.

The western governments are playing "let's affect regime change through economic warfare" but they appear to have bitten off more than can chew through their own hubris.

[stigmata]

russia will be back.... people are dreaming if they think this will kneecap them long term...

regardless

all this goes to show is people in suits and on computers manipulate every market ...and that its these people that are the market forces.

currencies and oil and gold and anything else...and they do.. as they are illustrating to us right now...

The whole thing is rigged.. obviously...