Questions tagged [oil]
36 questions
74
votes
5 answers
Why is the oil future price negative?
I don't understand why the price of oil futures went negative today.
News say it is because sellers cannot sell it. But, why don't they just hoard it until the coronavirus crisis is off?
Why don't speculators jump in and bring up the demand again…
user928172
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12
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5 answers
What is the reasoning behind the sharp fall of oil prices starting in mid 2014?
Things I have considered:
Poor economic conditions around the world could have caused an unpredicted decrease in demand. The resulting surplus has begun driving prices down.
This could be exacerbated by a decade of record-high prices that spurred…
123
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9
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6 answers
Why do falling oil prices take stocks with it?
The price of oil fell again today and is now below $30/barrel for the first time in 12 years. Along with the fall came most of the US stock markets. If I didn't know any other information except for "the price of oil fell today", my gut reaction…
TTT
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8
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2 answers
What benefits do OPEC countries obtain by cutting oil supply?
It is unclear to a economic novice like me why OPEC is not cutting down production and raising oil prices. I have read several journalists commenting upon this on the internet but perhaps an economist can explain this current fact better.
gansub
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7
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3 answers
What is the impact of fracking on oil prices?
I read an article about the recent fall of gas prices in the US claiming that the fall in gas prices was due to the expansion of fracking within the US. The article said that, over the past few months, the oil harvested from fracking had come onto…
Mathematician
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7
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1 answer
How successful will OPEC's predatory dumping strategy be?
Since the fracking industry in the US has started to grow rapidly, I have heard increasing reports that OPEC is attempting some form of predatory dumping in the hopes of making the fracking industry in the US unprofitable.
How successful do…
Mathematician
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5
votes
1 answer
Was the 2008 financial crisis caused more by the US subprime mortgage lending or more by an international energy and oil pricing crisis?
I recently read The Big Short by Michael Lewis in which the depiction of the role of subprime mortgage lending in the US and then run away speculation on CDOs are shown to be the central and primary cause of the 2008 financial crisis. Then today I…
Double Who
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5
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1 answer
Simple model to predict oil prices
Back when Hugo Chavez was still alive (former leader of Venezuela), he said they made "simulations" to predict how much oil prices will increase if they retire the supply of oil they were giving to the world, and that in that time that would cause…
Pablo
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4
votes
2 answers
How helpful is Hotelling's Rule in determining the price of oil?
After posting this question, I realized that there was quite a bit of controversy surrounding the use of Hotelling's Rule to estimate the price of oil. Participants on this site seemed to be evenly split on the issue.
From an Economics…
Mathematician
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4
votes
1 answer
Why are oil prices increasing in India despite countervailing trends in the international market?
Crude oil price is decreasing in the international market. But in India, the price of petrol and diesel is gradually increasing. Why?
Hailey
4
votes
1 answer
Why is oil price increasing in May 2016
Why is the oil price and correspondingly the down and midstream company stock prices are increasing in May 2016, when
The economic data across the world in weak
China's economy is
sluggish. They had another round of devaluation in early May…
rambalachandran
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4
votes
1 answer
OPEC's market share strategy: What is the benefit of market share in a fungible market?
Coverage of the recent fall in oil prices frequently mentions OPEC's decision to defend their market share, sacrificing price in the process. I understand how market share is important from a marketing perspective: strong brand loyalty gives a firm…
john_stech
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3
votes
1 answer
Crude oil benchmarks and production places
I discovered recently that there are 3 main price indicators for crude oil (used by the IMF): WTI, Dubaï, and UK Brent. If I understand correctly, each place trades some specific kind of oil (with more or less sulfur among other), which is related…
Yann
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2
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1 answer
Why are the gas prices so high in the US and why does it depend on OPEC+?
I've been reading these days a lot of discussions between people on the internet concerning the hikes in gas prices. I then read many articles about this, and the opinions are really different, and they are highly affected by the political…
Paul
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2
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1 answer
How exactly did Venezuela's economy fail?
Venezuela has unfortunately become the example of a first-world, wealthy democracy failing, and I'd like to make sure I understand why.
My understanding comes down to a few major steps, namely:
Venezuela has incredible stores of oil
In the late…
TheEnvironmentalist
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