Monday in the US the average gasoline price was $2.77 a gallon. That's a 5 year low. Oil is trading around 67.50 a barrel. I seen a price as low as 64.90 OPEC said they won't cut production, and the US says they won't cut production. This has strengthened the dollar, with gold falling in price. Have a good day. Time to dust off those SUV's.
Bigger question .. How is this low oil pricing affecting the various efforts to make the us and other countries less oil dependant. While oils cheap there is less impetus to look at renewable energy sources or to improve the efficiency of engines.
50 cents a litre? That's a third of the price of gasoline in my country. 4 bucks a gallon is still only a dollar a litre, which here is still very cheap.
To all the people complaining about high prices in their country, it's not the oil companies doing that it's your government.
Not complaining, just an interesting comparison. To be fair, cost of living and pay is usually higher here anyway, so it scales evenly I suppose.
Some things to ponder about american gas prices 1) the U.S. Government subsidies the gas industry to keep the gas prices down through tax breaks and other book keeping magic. 2) OPEC wanted to cut production (well countries like Venezuela, Russia, Nigeria and Iran ). Saudi Arabia said no full production ahead! Why would Saudis do this? Most likely to put pressure on the previously mentioned countries because they are very dependent on their oil income. Two of them are supporters of the current Syrian regime. All of this just complicates matters more. 3) gas is more expensive in ______ for two reasons A) your country doesn't give tax breaks to gas companies so they pass the cost on to you B) your country has a higher tax rate on gas/oil. 4) opec members may ultimately win this price war. Tar sand oils and fracking are starting to move into the negative dollar per barrel now. Secondly people are stupid and see gas prices at sub 3.50 and say hell yeah time to go buy that _______ I wanted but gets crappy gas mileage good bye civic/hybrid/greatgasmileage small car! Thus in a year or so everyone is driving cars that get 10mpg and gas goes back up to 9/gallon in the USA. All the while opec/oil companies just bathe in platinum and wipe their bums with the newly minted 1,000 dollar bills (what people will need to fill their tanks up) ***edit*** I forgot ISIS the lower oil price really screws with them since they are going to be losing millions of dollars from their oil production as well. They already sold below market value.
If your cousin thinks he can go into a business with 0 risk then he deserves to loose his money now before he makes a bigger/dumber decision later.
First off in 2004 gas was 1.15 per gallon in upstate new york. Secondly OPEC no longer enjoys a monopoly so they can't price fix anymore. 100 bucks a barrel was due to their reducing supply to raise prices. With increased supply comes lower cost but at the same time more consumers can purchase higher volume. Last is the increased supply of natural gas which a lot of industry uses as a supplement to oil. All of these balance and counter balance. Oil was 5 bucks a barrel in the 80s and it was still profitable. I work in the oil patch and can tell you no one is worried unless it drops below 30. If a company can't profit from 65 per barrel then they are bleeding money somewhere.
Well people on oil rigs will get played off because of how cheap oil and gas will be....The company's can't afford to pay for the workers...
Gas prices have nothing to do with supply and demand. It has to do with rich kings overseas wanting more money. They can make money today with oil at 20$ a barrel, but the speculators run it up for short sales profit. Isis has taken control on numerous oil refineries in the middle east, and prices are down. What does that tell you? It should be sky high from oil taken off of the market.
Night hawk, might be low for you guys but the Uk and Europe people make an average of more money than the average U.S. Citizen . Even after your alls high taxes paid out. I'm sure if you do the math and see. 4 is extremely high for us and what u pay for gas to what make is about the same.also Europe is allowed to have a lot better gas mileage cars. For example, 2 volkswagens they make there and don't make here, and won't allow. One gets 75 miles to the Gallon. Which is amazing, the other gets 350 miles to the gallon. Plus an extra 50 in electric.(only has a two gallon tank tho) And they won't allow these because " they don't have the same parts" well no ****, there parts are clearly better.