Oil prices fall below $40 a barrel for first time since 2009

[dancingshoes]

Oil prices dipped below $40 a barrel Friday for the first time in 6 ½ years on the prospect of falling global demand, busting through a key threshold that could signal further declines and market turmoil.

"It's a very important psychological level,“ says Phil Flynn, senior energy analyst with the Price Futures Group. “It really signals that the global economy is in trouble.”

http://www.usatoday.com/story/money/markets/2015/08/21/oil-prices-friday/32119671/

 

[frenchbriefs]

So cheap,surely US should be bankrupt by now.

 

[Leongsam]

So cheap,surely US should be bankrupt by now.

Please explain why cheap oil would bankrupt the US.

 

[looneytan]

So cheap,surely China should be bankrupt by now.

 

[frenchbriefs]

Please explain why cheap oil would bankrupt the US.

Most of their oil are produced by expensive frackingtech that is not sustainable under 40 bucks?

 

[Leongsam]

Most of their oil are produced by expensive frackingtech that is not sustainable under 40 bucks?

While cheap oil harms the oil producers, surely there are many industries that will benefit from cheap oil. Doesn't that even things out?

 

[frenchbriefs]

While cheap oil harms the oil producers, surely there are many industries that will benefit from cheap oil. Doesn't that even things out?

Yes like chinawhich is a major manufacturer and producer,usa can save on their oil guzzling ssuvs and mcdonalds frying oil I guess

 

[Cerebral]

Yes like chinawhich is a major manufacturer and producer,usa can save on their oil guzzling ssuvs and mcdonalds frying oil I guess

Cheap oil means US car markets will do well. All the suburbans et al will sell well. We will probably see good results from the likes of GM, Buicks, Fords.. if the trend continues

 

[Leongsam]

Yes like chinawhich is a major manufacturer and producer,usa can save on their oil guzzling ssuvs and mcdonalds frying oil I guess

The airline industry in the US will get a significant boost. So too will transportation, retail, travel, hospitality and automobiles.

The US is still a net importer of oil so cheaper oil has to be good overall.

 

[JHolmesJr]

Its about time to make gasoline free for all…its a vital component of our lives like fresh air.

Anyone who can promise this will win every election in the world.

 

[mojito]

If oil prices fall to $20 a barrel, what will happen to the government's petroleum tariffs? Luckily in singapore, the PAP has a steady hand. No matter what oil price levels are, tax collections and petroleum prices are largely stable so people can go about their lives without too much fuss and worry over global economic changes.

 

[enterprise2]

Most of their oil are produced by expensive frackingtech that is not sustainable under 40 bucks?

Correction. The US oil producer will be unprofitable - not sure if they will go bankrupt. But rest of US will enjoy cheaper oil and on the whole US will benefit

 

[Runifyouhaveto]

Jurong Aromatics Corp, operator of one of the world's largest petrochemical plants, cannot service its interest payments and is negotiating a debt restructuring with bankers amid a plunge in oil prices, people familiar with the situation said.

http://www.straitstimes.com/busines...matics-said-to-be-in-debt-restructuring-talks

 

[mojito]

Jurong Aromatics Corp, operator of one of the world's largest petrochemical plants, cannot service its interest payments and is negotiating a debt restructuring with bankers amid a plunge in oil prices, people familiar with the situation said.

http://www.straitstimes.com/busines...matics-said-to-be-in-debt-restructuring-talks

No scare. It is just a technical default. Shareholders up lorry. No jobs will be lost except executive suite reshuffle.

 

[dancingshoes]

actually, the worst hit is russia. it has been energy and gas exporter, current interest rate in russia is 11%. this shows that they are driving up their currency in the midst of falling oil prices. as russia is the biggest oil producer, it loses about $2bn in revenues for every dollar fall in the oil price, and the World Bank has warned that Russia's economy would shrink by at least 0.7% in 2015 if oil prices do not recover.

 

[enterprise2]

actually, the worst hit is russia. it has been energy and gas exporter, current interest rate in russia is 11%. this shows that they are driving up their currency in the midst of falling oil prices. as russia is the biggest oil producer, it loses about $2bn in revenues for every dollar fall in the oil price, and the World Bank has warned that Russia's economy would shrink by at least 0.7% in 2015 if oil prices do not recover.

Maybe Roman no more monies to bankroll Chelsea!

 

[Cerebral]

If oil prices fall to $20 a barrel, what will happen to the government's petroleum tariffs? Luckily in singapore, the PAP has a steady hand. No matter what oil price levels are, tax collections and petroleum prices are largely stable so people can go about their lives without too much fuss and worry over global economic changes.

Why you worry so much? The last round when petrol drop to $50 and the govt increased tax and suddenly the pricenper litre went back to around 2.20. Mathematically, you can safely surmise that the increase was beyond the norm and there must be significant buffer

 

[Kuailan]

While cheap oil harms the oil producers, surely there are many industries that will benefit from cheap oil. Doesn't that even things out?

Yes oil per barrel can be US $40.00 but the benefit NEVER goes to end consumers, bloody PAP increase taxes on Petrol, so end users still pay the
price per litre similar to those days when it was US$120.00/barrel!

You think we should keep the old hag 50 yr PAP in power?? time to switch OFF!!
never have you ppl in their mind, always think of Money and how to screw money
from peasants!

And time to get them off!!

Bloody Hell still paying $2.25 per litre for 95 octane fuel!