WTI crude oil slips below $100 per barrel


It's the first time below the century mark for U.S.crude since July and is at least partly being blamed on dull demand thanks to refinery maintenance work. At the same time, domestic output is surging thanks to shale production.

November crude is off nearly $1 this morning and more than $10 since Labor Day to $99.85 per barrel.

AAA's daily report has national regular gasoline prices down to $3.349 per gallon vs. $3.486 a month ago and $3.676 a year ago.

USO -0.9% premarket.

ETFs: OIL, USO, DBO, OLO, USL, CRUD, UCO, DTO, SCO, SZO, DNO, UWTI, DWTI, BNO, UOIL, DOIL.

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Comments (9)
  • DeepValueLover
    , contributor
    Comments (11313) | Send Message
     
    Collapsing oil prices along with massive QE will light a fire under the U.S. economy.

     

    Expect a huge increase in M&A due to some of the cheapest money in a generation.
    21 Oct 2013, 08:20 AM Reply Like
  • Tricky
    , contributor
    Comments (2519) | Send Message
     
    A price fall is "at least partly being blamed on dull demand thanks to refinery maintenance work" ???

     

    Wouldn't refinery maint be a force in supply restriction and therefore a force in *raising* prices?
    21 Oct 2013, 08:42 AM Reply Like
  • SA Editor Stephen Alpher
    , contributor
    Comments (563) | Send Message
     
    We're talking about crude oil, not gasoline in that opening point. At the margin, refinery maintenance means less demand for crude.
    21 Oct 2013, 09:24 AM Reply Like
  • Tricky
    , contributor
    Comments (2519) | Send Message
     
    Ah, thanks Stephen.
    21 Oct 2013, 09:38 AM Reply Like
  • Walter P. Chrysler
    , contributor
    Comments (300) | Send Message
     
    believe it or not you can pour oil directly into a diesel engine "no refining necessary." that's how the railroads and huge shipping companies do it. not recommending that of course...that's why these fires are so common on some of these cruise lines.
    21 Oct 2013, 10:40 AM Reply Like
  • Cliff Hilton
    , contributor
    Comments (2843) | Send Message
     
    @tricky, Yes, prices normally rise when there is maintenance. I guess someone forgot to check their previous statements from years past. They don't want to mislead the viewing public the next time prices rise and say it's due to maintenance. Surely this statement will get qualified.
    21 Oct 2013, 09:22 AM Reply Like
  • bbro
    , contributor
    Comments (11234) | Send Message
     
    US motor gasoline consumption was 135 billion gallons in 2012....
    21 Oct 2013, 09:23 AM Reply Like
  • Walter P. Chrysler
    , contributor
    Comments (300) | Send Message
     
    gasoline prices are totally collapsing. i'm not kidding when i say i can see gasoline prices hitting ten cents a gallon in Texas. We'll see about North Dakota because they don't have much in the way of refining capacity within the State. Not true in Montana though. And refining oil is quite cheap actually. Obviously if you use natural gas directly there is no need for refining period. I would expect the roll out of that fueling network to proceed apace as well.
    21 Oct 2013, 10:43 AM Reply Like
  • geologist
    , contributor
    Comments (591) | Send Message
     
    Walter - There has been and is a significant increase in the production of tight shale oil that has come on line in the recent years, but we are not going to see gasoline prices drop to 10 cents/gallon here in the U.S. To have a collapse in oil prices our countries demand for crude oil would have to fall to the point where we do not need to import any foreign oil. The price of foreign oil imports is based on world prices which is driven by demand. As long as the developing countries such as China etc are increasing their demand for crude oil, the price for crude will remain elevated.

     

    China just passed the U.S. for the amount of oil it imports. China is now the worlds biggest importer of crude oil. If our internal demand for crude oil had not decreased over the past years we would still be the largest importer of crude oil. Thus our decrease in demand along with the increasing production of tight shale oil has caused our imports of foreign crude to decrease, but there are a number of developing countries more than willing to take what we do not need. If we had a world recession we could see crude oil prices decrease significantly, but that is not the case at this point.

     

    One way we could decrease our foreign oil imports even more than we have is if we would employ our domestically produced natural gas as our primary fuel for cars and trucks. There have been major changes in large trucks regarding utilizing natural gas, and GM is going to offer natural gas fueled cars in the future also. But the infrastructure is not in place for cars to be fueled by natural gas. It would be great to see that, but oil is the primary fuel source for our transportation systems at this point. Regards.
    21 Oct 2013, 02:51 PM Reply Like
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