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Oil Prices Jump Most on Record After Saudi Strike
- croh 7y agoHope it helps Venezuela.
- discordance 7y agoIt would probably line the pockets of Venezuelan plutocrats rather than help Venezuelan people if it did have any affect.
- wiz21c 7y agoIs it me or I read a while ago that there are vast reserves in the US and other places (accumulated when oil was cheap) and so, a little strike here and there should not be a problem ? Or is it the price of the "futures" (if I get that concept right) that goes up ?
- tom_mellior 7y agoGiven that there was a large jump and then a quick fall back to lower levels, a lot of it is probably speculators trying to make a quick buck, not actual worries that supply might be threatened. Remember that the first time the oil price reached 100 USD it wasn't because of actual economic reasons, it was because a trader wanted to go down in history as the first person to buy a barrel for 100 USD.
- kmlx 7y ago> Brent Crude is a major trading classification of sweet light crude oil that serves as a benchmark price for purchases of oil worldwide. > London’s Brent futures leapt almost $12 in the seconds after the open, the most in dollar terms since they were launched in 1988. > Prices have since pulled back about half of that initial surge of almost 20% > Donald J. Trump @realDonaldTrump PLENTY OF OIL! > WTI crude surged 15% at the weekly opening bell > Prices have since pulled back around half
- bayesian_horse 7y agoDefine "a problem". At any point in time, prices will reflect not only the current supply and demand, but rather the future expected demand and supply. Whenever the future supply is uncertain, there will be fluctuations. It's not likely that there will even be a permanent reduction in capacity from this.
- sytelus 7y agoOnly 5% of world oil supply is suspected to be affected but oil futures have gone up by 15%. This is the result of speculation that causes initial large spike and then subsequent oscillations to a stable value.
- nkkollaw 7y agoThat's only 5% though at ~$70/barrel. Didn't it use to be $100/barrel and civilization didn't end? Seems to me to be sensationalism to get clicks.
- cf141q5325 7y agoAnd to gather support for a war against Iran.
- nkkollaw 7y agoYes, American media is pro-war nowadays for some reason, so that's entirely possible to me.
- bayesian_horse 7y agoWhat "American media" is "for" a war with Iran? I had the impression that the decision to stop the nuclear treaty was received with rather mixed feelings. The driving force behind any such development is Donald Trump, his administration and somehow the Israeli government that seems strangely eager to encourage Iran to start working on nukes again.
- nkkollaw 7y agoActually, Trump was advised by Bolton to attack Iran after they shot down the unmanned drone a few weeks ago, and was heavily criticized by the press for not killing 100 people over a drone.
- bayesian_horse 7y agoThen you need to pay better attention. Most of the criticism was directed at the way he waffled about the decision. We don't know what actually happened in the brain of the president. On a good day he is lying, corrupt and lazy. On a bad day he has obvious cognitive deficiencies. So we can't know if he intended to follow through on the attack or if it was just a show. We don't know how certain he and his people are about Iran attacking the drone.
- sudoaza 7y agoSo Yemeni fighters did more to fight climate change than Greta Thunberg, kudos
- bayesian_horse 7y agoThe oil is burning, however, releasing all the CO2 at once.
- seventhtiger 7y agoThe fire was controlled within hours.
- bayesian_horse 7y agoThen that oil will find its way into the economy anyway.
- Tade0 7y agoOnly the oil that was already pumped out at the time of the fire was ever burning, and the fire is said to be under control. Meanwhile 5mln bbls of oil daily don't make it out of the ground and won't again anytime soon.
- dr_dshiv 7y agoI'm not a conspiracy theorist, but some people are going to make a lot of money from this. Who makes the most? Unclear. Even Saudi Arabia benefits, if it results in persistently higher prices and greater geopolitical support.
- rapsey 7y agoWhat you said is entirely meaningless. Someone is always making a lot of money. Any situation results in winners and losers.
- bb123 7y agoBy your logic no one should ever question the financial motivations of anyone, ever. It seems completely reasonable to me to question who stands to gain the most from something like this.
- rapsey 7y agoI was replying to the first statement. You are talking about the second and putting words in my mouth.
- dr_dshiv 7y agoConsidering that the actors causing the attack are unknown, it makes sense to consider who would benefit from it. Can you explain why you view this as "entirely meaningless"?
- mtw 7y agoI can't wait for electric vehicles to be more widespread so we would be more independent from the sh*tshow in the Middle East
- Gibbon1 7y agoIt's coming, electric cars are going to murder oil profits.
- c12 7y agoThis is why all the clever oil companies have been pivoting investment into renewables.
- Brakenshire 7y agoThey seem to be shifting more into energy in general, so grids, storage, charging, and energy production.
- Brakenshire 7y agoWe’re just entering into a cycle which will vastly reduce the importance of the oil market. If the price goes up more people switch irretrievably to electric vehicles, if the price goes down investment suffers. And every year the cost of batteries falls by 20%. BNP Paribas recently estimated that over 25 years oil will have to come down to $9 per barrel to compete with the cost of delivering the same amount of energy to vehicles using batteries and electricity. Oil is just going to become one chemical feedstock amongst many, important but no more so than other major commodities.
- flurdy 7y agoUntil we figure out better alternatives to plastic (or rather are more incentivised to use alternatives), and other by-products, then we will be stuck with our total dependence on petrochemicals. True, more use of EVs will reduce oil demand somewhat and lower prices. Though that again just means less investment in exploration and research, and temporarily seal low yield oil fields, we will still pump more or less the same enormous amount of oil we do today, if not more due to ever-increasing Earth population.
- deleted 7y ago[deleted]
- carlsborg 7y agoAt $59.7 WTI is just back to where it was in early July, and some distance away from the highs of April ($65.x). And the futures curve is in backwardation - markets are pricing Jun 2020 futures at $55.55 with a mere $2.83 jump because of these attacks.
- whaddawhat 7y agoIs there a good source tallying up the (refined) oil reserves? How long until a 5% decrease in production really propagates to the supply?
- Tade0 7y agoThe norm seems to be to have at least three months' worth of supplies, so the question is rather how quick can those sources return online? If that is not poised to happen anytime soon, the prices should go up almost immediately. So far I think we had a mixed response.
- seventhtiger 7y agoAccording to WSJ, Saudi Aramco says they will have 30% of lost capacity back on Monday.
- lnsru 7y agoIf it was really a drone attack, it shows that’s drones are unstoppable. There should be a huge market opportunity for anti drone equipment right now. Looks like, that soft solutions as https://www.rohde-schwarz.com/lv/solutions/aerospace-defense-security/security/law-enforcement-public-safety/countering-drones/countering-drones-theme_233578.html https://www.rohde-schwarz.com/lv/solutions/aerospace-defense... do not really work. Maybe it’s time for commercial version of Israel’s Iron Dome. Or something from USA: https://en.m.wikipedia.org/wiki/Phalanx_CIWS https://en.m.wikipedia.org/wiki/Phalanx_CIWS
- avip 7y agoThere is a commercialized version of iron-dome, baring the noninteresting name drone-dome [0] And there are multitude of other players in this field* [1] * examples are from Israel because I already know the names so the search is faster, surely there are multiple global providers of similar systems [0] https://www.rafael.co.il/worlds/air-missile-defense/c-uas-counter-unmanned-aircraft-systems/ https://www.rafael.co.il/worlds/air-missile-defense/c-uas-co... [1] https://convexum.com https://convexum.com
- lnsru 7y agoBut is there enough laser energy to change the course of fixed wing drone? I am afraid, that such drone shot by laser will still deliver explosives to intended location. Of course, quadcopter has no chance against it.
- tudorw 7y agoRe-engineer the plants to run on Victorian technology and have regular massive emp pulses to cover the facility? Let's face it, out of any industry this one has a tonne of cash to throw at solutions.
- Coffeewine 7y agoMight be cheaper to surround it with a colossal chain link dome, if money is no object.
- tomerbd 7y agoMy parents were born in Yemen in hebrew "Teimani"