WombRaiders:
There are no indicators to suggest why crude prices should fall.

China is growing bigger by the day. Shale oil is no way an alternative to crude. Energy demand is soaring due to china, India and emerging nations like Nigeria rapidly industrializing and getting more prosperous.

So every indices points to a Washington manipulated pricing.

This is not the first time the yanks have manipulated commodity prices to hurt a foreign government they are not seeing eye to eye. They did it in the 80's with south American coffee producing Nations like Bolivia who towed the socialist agenda.

In the clamour to invade Iraq under the pretext of searching for WMDs, oil pricing was manipulated upward to get Arab neighbors to look the other way and to pacify Americans back home who were reeling from a spike in pump price to be indifferent and see Sadam as a pain in the azz who made filling their rubbish gas guzzling clunking junk trucks more expensive.

jazzydee:
@OP what you do not understand is that a low oil price affects the USA as much as it affects OPEC.

While low oil price in the market reduces the revenue accurable to OPEC, it will have a much bigger impact on the US oil production: Shale oil was only economical because of the high price of oil in the market since shale oil production is a very expensive technology far more expensive than the conventional methods used by OPEC, a low price of oil in the market threatens the boom in shale oil in the USA. If this is sustained over a long time shale oil production will grind to a halt as it will no longer be profitable, at present many fields that were earmarked for shale production projects has been abandoned because of the low market price of oil. This might mitigate against the gains that USA has made towards energy independence. USA might start importing large qty of oil from OPEC(Nigeria) again if this low price continues.

Lower price of oil is not goodnews to the American govt. and its future, it might be good for the masses as the pump price may come down!

WombRaiders:



Low oil price is far better to the US economy than higher pricing because on the long run it will lead to an increase in trade deficits being that the US hardly manufactures anything since outsourcing to China.

You also fail to realize that shale drilling is not the issue but extraction of crude from shale through refining is the hindering factor.

jazzydee:


You dont get the overall picture, your premise is very wrong, Low oil price can never be a useful tool in the hands of the American govt. stop this conspiracy theories.

WombRaiders:


My friend, crude is not just used to pump gas. Look around you wherever you are can you imagine a world without petroleum derived products?

Everything from fertilizers, resins, chemicals, plastics, electronics etc make use of crude derivatives.

If crude is expensive so will does products as well.

Stop looking at crude solely as fuel. See it for its numerous production application as a resource.

Why you think china can't get enough crude?

jazzydee:

I think this issue is beyond your ken, if you fail to see the point i raised then there is no point responding to you. Low oil price in the market is not a one way street, It will affect every one OPEC,Russia and USA.

If the USA wanted to take Russia down at all cost inclusing their own economy through this method as your theory suggest then a much better way would be to fire a nucler missile at russia and then they would be mutual distruction, and you and i know that uncle sam is more subtle than that.
The US no matter the stakes will never go against their economic interest. A sustained low price of crude oil has enormous negative impact in the US economy as much as in Russian Economy.

jazzydee:
Now here is a more plausible conspiracy theory: The saudi Arabia are the ones forcing the oil price to drop, by lowering their price and supplying more crude to the market forcing the price down. their goal is to truncate the gains that the USA has made in Shale production and increase crude production. This will destroy USA production gains and force them to return to the status quo of dependence on OPEC(saudi Arabia).

Increase crude production in the USA is a threat to OPEC(Saudi Arabia).

WombRaiders:


That is the most illogical theory ever!

Crude is a finite resource and Saudi Arabia has since past peak oil meaning that it is all down hill from here.

The Saudis will be daft to flood the market with their dwindling stock in order to get the US to stop development on shale oil?

Haba!


I thought you were smarter than this.


Your theory reminds me of what transpired in the refugee camps of Rwanda during the genocides.

It happened that over 800,000 people had converged in Burundi from Rwanda fleeing the genocide.

The locals saw a need for firewood which they sold to the displaced people. The Red cross and UN representatives saw an impending ecological disaster in the making from the deforestation due to firewood market. The UN then provided straw fuel to the refugees. The refugees still bought firewood because it was easier to get than waiting on a long line. Rather than the firewood merchants to further cut supply in order to force the price up, they flooded the camps with more and more firewood that it became far cheaper than the subsidized straw fuels that were supplied by the UN.

This is the only rare case of such and economists till this day are baffled by the antics of the Burundi firewood merchants

jazzydee:


Since you are dealing in conspiracy theories, and not on reason or fact.I decided to give you one conspiracy theory that is more believable than your own.

jazzydee:
Now here is a more plausible conspiracy theory: The saudi Arabia are the ones forcing the oil price to drop, by lowering their price and supplying more crude to the market forcing the price down. their goal is to truncate the gains that the USA has made in Shale production and increase crude production. This will destroy USA production gains and force them to return to the status quo of dependence on OPEC(saudi Arabia).

Increase crude production in the USA is a threat to OPEC(Saudi Arabia) including Nigeria

saxywale:

This is what every oil worker I know in north America (both Canada and US) are talking about.

Below is an interesting article published last month.

http://www.nasdaq.com/article/low-oil-prices-hurting-us-shale-operations-cm404821

WombRaiders:
There are no indicators to suggest why crude prices should fall.

China is growing bigger by the day. Shale oil is no way an alternative to crude. Energy demand is soaring due to china, India and emerging nations like Nigeria rapidly industrializing and getting more prosperous.

So every indices points to a Washington manipulated pricing.

This is not the first time the yanks have manipulated commodity prices to hurt a foreign government they are not seeing eye to eye. They did it in the 80's with south American coffee producing Nations like Bolivia who towed the socialist agenda.

In the clamour to invade Iraq under the pretext of searching for WMDs, oil pricing was manipulated upward to get Arab neighbors to look the other way and to pacify Americans back home who were reeling from a spike in pump price to be indifferent and see Sadam as a pain in the azz who made filling their rubbish gas guzzling clunking junk trucks more expensive.

jazzydee:


Thank you jare, Dont mind the OP , this issue appers to be beyond his ken. It is very obvious he dosent know what he is talking about.

ofiafuluego:



OP, I partially disagree that d US is responsible for that, I think the blame shld go to SaudiArabia who in a bid to cripple d American shale oil(which involves a whole lot of technical and financial involvement for production) and oust them out of d competition in d oil market decided to produce above demand.REMEMBER Saudi Arabia has so much reserve to survive on even when d price goes as low as $20 per barrel hence dey want to cripple America's shale oil which cannot survive in d oil market if d present price continues.
Unfortunately for Nigeria and other oil dependent countries, d fight Among the two elephants is affecting the smaller Animals. Russia on its own operates a diversified economy to some extent hence the pressure is not much on them.

jazzydee:
@OP what you do not understand is that a low oil price affects the USA as much as it affects OPEC.

While low oil price in the market reduces the revenue accurable to OPEC, it will have a much bigger impact on the US oil production: Shale oil was only economical because of the high price of oil in the market since shale oil production is a very expensive technology far more expensive than the conventional methods used by OPEC, a low price of oil in the market threatens the boom in shale oil in the USA. If this is sustained over a long time shale oil production will grind to a halt as it will no longer be profitable, at present many fields that were earmarked for shale production projects has been abandoned because of the low market price of oil. This might mitigate against the gains that USA has made towards energy independence. USA might start importing large qty of oil from OPEC(Nigeria) again if this low price continues.

Lower price of oil is not goodnews to the American govt. and its energy future and outlook, it might be good for the masses as the pump price may come down!
And also dont forget that 70% of the oil majors are located in USA and quoted in the US stock exchange low profits/gains in this oil majors has direct impact in the US economy.

It would have been better if the OP's discussions have been in the form of enquiry.
@OP, I will advice you stop blaming America for Nigeria's economic and developmental woes.
Leaders in goverment should put on their thinking cap and help to shapen a formidable economic plan for this nation.

I will be waiting to see if the low price in oil will translate to a reduction in pump price in Nigeria but I doubt it.

RockMaxi:



It would have been better if the OP's discussions have been in the form of enquiry.
@OP, I will advice you stop blaming America for Nigeria's economic and developmental woes.
Leaders in goverment should put on their thinking cap and help to shapen a formidable economic plan for this nation.

I will be waiting to see if the low price in oil will translate to a reduction in pump price in Nigeria but I doubt it.

tpia6:
why are you people hating on lower oil prices, haba.

voltron:
@OP I am not sure how that relates to Nigeria.. as per. in the past 26 years, Nigeria has not been able to meet OPEC MINIMUM (20%) crude exports limits. all these Money we are sharing has been below our daily crude export limits. imagine if we could meet at least 50% of our allocation.. and someone starts accusing the US for conspiring to drop crude prices.. maybe in other "target" countries but surely not Nigeria

saxywale:

hating ke. when I got fuel for 99 cents/litre at the pump today.

tpia6:


i checked google, didnt see anything like that.