Oil Price Per BBL

[Shadowrider]

If it's a dead cat it's bouncing pretty high.

1/17/2014:
CLR +14.03%
DVN +7.15%
SD +12.57%
CHK +8.02%

12/18/2014:
CLR +0.60%
DVN +0.06%
SD -8.08%
CHK +2.83%

12/19/2014
CLR +5.46%
DVN +1.69%
SD +10.99%
CHK +3.76%

(Reuters) - U.S. stocks extended gains for a third session on Friday, giving the S&P 500 its best weekly performance in nearly two months as energy shares continued to rebound.

Here's an atricle that illustrates why the fundamentals on some of these companies are as solid as ever.

And we have congress firing back at the Saudis

 

[tntrex]

3 or 4 day up on long slide is most def indication of set up possible dead cat bounce. That's where the name comes from . If this week was a lot of short covering the price is going south some more. If it wants to reverser trend then jump in on the trend, don't guess the bottom.

 

[CHenry]

Cattle prices took an incredible drop the last couple of weeks.

Thats nice to hear.

 

[tntrex]

it was a dead cat bounce.

 

[Nraman]

Imagine what the oil prices would be like if Iraq was not out of the oil business all these years, no Iranian sanctions and last but not least if the Feds were not acting like OPEC members preventing production in Alaska and offshore and allowing oil companies to sit on leases instead of drilling.
It would be bad news for the oil companies, good news for the US economy.
The oil business is not unlike the diamond and the farm business. Controlling availability controls prices.
Everything was nice and cool until the frackers started fracking on land not controlled by the Feds and destabilized the tightly controlled market.
They tried to stop them using several excuses, they succeeded in NY State failed most of the time and we enjoyed low NG and oil prices.
If the government allowed US companies (kept the foreign and multinational corporations out) to drill everywhere, the economy would not be in the sorry shape it is today.
Newt claimed that if elected President, he would allow unrestricted drilling that would fix the economy. Assuming that the oil lobbies would allow him to do so.

 

[okietool]

It would be bad news for the oil companies, good news for the US economy.
Everything was nice and cool until the frackers started fracking on land not controlled by the Feds and destabilized the tightly controlled market.
They tried to stop them using several excuses, they succeeded in NY State failed most of the time and we enjoyed low NG and oil prices.
If the government allowed US companies (kept the foreign and multinational corporations out) to drill everywhere, the economy would not be in the sorry shape it is today.
Newt claimed that if elected President, he would allow unrestricted drilling that would fix the economy. Assuming that the oil lobbies would allow him to do so.

The overall economy maybe. With the job losses, tax and revenue losses, I'm not sure if it will be a net gain for the economy. The OTC may have revenue loss numbers available some where right now. Any time we see price drop in any facet of our lives, it will have consequences beyond putting a few dollars back in our pockets, be it cheaper gasoline, cheaper food, cheaper clothes. The job losses are already in the thousands and it will get worse. Like it or not, Oklahoma's fate and fortune are tied to oil and natural gas.
You do realize fracing is not a new process? You're looking in the right direction, but drawing the wrong conclusion. Horizontal drilling, not fracing has been the game changer. IMO.
The only way the federal goobermint can keep foreign companies out would be to nationalize mineral rights, a lot of the majors, maybe all of the majors are true multinationals. BP obviously British roots, but they also absorbed Amoco (Standard), SOHIO (another Standard), Shell was originally Royal Dutch Shell. Sclumberger = French.
If Iraq's and Iran's full production had been available (above board), oil prices may have actually stayed higher. Domestic oil exploration would not have grown to the level it has.

 

[Wheel Gun]

Looking forward, we can probably assume WTI prices in the mid-$50s this year and then back in the $70s next year. (per the EIA)

 

[Nraman]

The overall economy maybe. With the job losses, tax and revenue losses, I'm not sure if it will be a net gain for the economy. The OTC may have revenue loss numbers available some where right now. Any time we see price drop in any facet of our lives, it will have consequences beyond putting a few dollars back in our pockets, be it cheaper gasoline, cheaper food, cheaper clothes. The job losses are already in the thousands and it will get worse. Like it or not, Oklahoma's fate and fortune are tied to oil and natural gas.
You do realize fracing is not a new process? You're looking in the right direction, but drawing the wrong conclusion. Horizontal drilling, not fracing has been the game changer. IMO.
The only way the federal goobermint can keep foreign companies out would be to nationalize mineral rights, a lot of the majors, maybe all of the majors are true multinationals. BP obviously British roots, but they also absorbed Amoco (Standard), SOHIO (another Standard), Shell was originally Royal Dutch Shell. Sclumberger = French.
If Iraq's and Iran's full production had been available (above board), oil prices may have actually stayed higher. Domestic oil exploration would not have grown to the level it has.

I am not an economist but I noticed that every time we had a big jump in oil prices, the economists predicted that it would hurt the economy and every time we had a drop the opposite.
When NG prices dropped I read about European companies that were thinking about moving to the US to take advantage of the cheaper energy.
The majority of the oil all over the world is controlled by a handful of oil companies and governments. No free enterprise here. Applying free enterprise methods in the US by allowing unrestricted drilling/production would allow the oil to find its correct price.
Giving preference to US companies would keep the money in the US where it is badly needed. Yes, if the government can give contracts to minorities, they can also figure out a way to give the leases to US companies, assuming that the lobbies allow it; big bucks go to the lobbies, they must be effective. Companies like Shell, get oil leases from the government and sit on them. Using them would affect oil prices and hurt profits.
Mit Romney was making speeches about North American oil independence. Cute except for some minor details. He was not running for President of North America, his implied US independence meant more imported oil from a different source, where is the independence there? All this nonsense in a country that may have more oil than any other in the world and unlike any other country, doesn't allow unrestricted drilling.
We are conditioned to blame the liberals for drilling restrictions but, when the Republicans have the House, Senate and White house, they don't act much different than the liberals when it comes to oil. It can't be that they are worried about losing the environmentalist vote, they never had it, never will.

 

[Nraman]

Looking forward, we can probably assume WTI prices in the mid-$50s this year and then back in the $70s next year. (per the EIA)

View attachment 45048

It's a tightly controlled market, at any moment OPEC can decide to cut production. We are at their mercy because we are not allowed to produce our own oil.
The price will be what they decide. Whether they allowed the prices to drop to drive the frackers out of business or to screw with Russia that doesn't like to be controlled by OPEC or to mess with Iran, for whatever the reason, they still have control.

 

[Tulsa Mike]

Saudi prince just announced there would never be $100/barrel oil again......
Tulsa Mike