Under $35

Professional Mariner Forum
85

[QUOTE=z-drive;177441]So…good time to lift export ban …[/QUOTE]

It is a better time to shut down the wells and save our domestic oil for the day when the idiots selling it for nothing run out. It is bad enough we are draining our reserves to give it away but we aren’t even smart enough to transport it on our own ships and employ our own people … you know, the shrinking number of folks who pay taxes.

We are watching the final chapters of the decline of a great nation. They are being written by traitorous politicians and blindly supported by ignorant people who have been brainwashed by radio shockjocks to think it is the fault of others that they are living in a double-wide and just had their pickup truck repoed.

86

Finally, now we know what U.S Energy Independence looks like. A barrel of oil cheaper than a barrel filled with bottles of Dasani Drinking Water. The idiom about being careful concerning wishes is true for those who produce the energy for that long sought independence. Now how do we put the genie back into the bottle?

87

here are today’s closing numbers…

24216121280_dd975f9b91_b.jpg656×503

but please don’t cry over this…UNCONTROLLED PITIFUL SOBBING WOULD BE MUCH MORE APPROPRIATE!

88

Prices for all Americans and their families are dropping: lower home heating costs, cheaper electric bills, gas at the pump is a buck-fifty and falling! Oh, the horror. Oh, the humanity.

90

[QUOTE=DeckApe;177474]Prices for all Americans and their families are dropping: lower home heating costs, cheaper electric bills, gas at the pump is a buck-fifty and falling! Oh, the horror. Oh, the humanity.[/QUOTE]

Enjoy eating cake while you can.

91

for what its worth, handy graph from my neck of the woods:

Figure 1 is calculated based on costs associated with the average household usage by fuel type and is a useful comparison year to year for any one fuel type. It should not be used to compare one fuel type to another because it is not normalized for factors that affect fuel usage such things as size of household or square footage. For example, it may appear that electric heat is a lower cost alternative to other fuels, however; it is generally used in smaller spaces such as apartments and condos and is actually more expensive both on a square foot basis and based on a comparison of energy delivered. Energy delivered or “energy intensity” is a better comparison among fuels because it measures energy delivered (energy intensity) using a common unit of measurement. In Figure 2, energy intensity is expressed as the cost of energy versus the amount of energy produced in millions of British thermal units (MMBtu), (One Btu is the heat required to raise the temperature of one pound of water by one degree Fahrenheit.)-U.S. EIA). Based on energy intensity, Figure 2 depicts electricity as the highest cost fuel.

93

[QUOTE=lm1883;177483]Is heating oil the most predominant means of heat in your region?[/QUOTE]

Was, may still be, however natural gas may have surpassed it or is about to. I like oil because I can buy it when i feel the price is good. Larger homes often have two 275-gallon or bigger tanks so you can try and maximize savings by buying when its low. Last winter I did alright by running my tank down as low as possible the previous spring. People can say its BS but when you save as much as $500 a winter, its something. With natural gas they only adjust the price once or twice a year so you’re locked in regardless of what the market does.

Natural gas isn’t as cheap as the graph suggests as many small insulated condo’s with efficient heating systems have individual gas meters. I’d say its on-par with oil for the most part, last winter and this winter oil is probably cheapest.

Costs to convert from oil to gas over the last 5 years have definately not resulted in the sales-pitch savings.

94

[QUOTE=DeckApe;177474]Prices for all Americans and their families are dropping: lower home heating costs, cheaper electric bills, gas at the pump is a buck-fifty and falling! Oh, the horror. Oh, the humanity.[/QUOTE]

Don’t expect gas prices to be cheap forever. Congress is mulling a federal fuel tax rate increase right now. The federal fuel tax has been at 18.4 cents per gallon of gas and 22.4 cents per gallon of diesel since 1993. Since vehicles get much better fuel mileage now than they did in 1993, the feds feel cheated since folks are technically buying less gas per mile driven now. Several states have gas tax increases in the works right now as well. Don’t expect those tax rates to go back down once the price of oil recovers either.

95

although inventories rose by more than expected, the price for WTI crude this morning is stable…this is good, maybe we have bottomed out

[B]US crude inventories rise by 4 million barrels: EIA[/B]

Reuters

Oil firmed on Thursday, rising along with equities following hints of monetary stimulus in Europe, but crude prices remained near 12-year lows on persistent concerns about a supply overhang and the outlook for demand.

Oil futures dropped to their lowest levels since 2003 this week as investors worry that a glut of crude is combining with slowing demand due to economic weakness, especially in China.

Investors will watch for data from the Energy Information Administration at 11 a.m. (1600 GMT) for more detail on the extent of oversupply in the United States.

Analysts expected crude stocks to rise by 2.8 million barrels in the week ended Jan. 15, according to a poll of eight analysts. Data from the American Petroleum Institute, a U.S. industry group, showed crude inventories rose by 4.6 million barrels.

International benchmark Brent was up 35 cents at $28.23 a barrel by 10:57 a.m. EDT (1557 GMT). Brent has lost 26 percent so far in January, on track for its biggest monthly fall since 2008.

Front-month West Texas Intermediate (WTI) crude futures traded at $28.55 per barrel, up 20cents from their previous close.

U.S. futures and Brent moved higher after European Central Bank President Mario Draghi said it would be necessary to review the Bank’s monetary policy stance in March.

This led to increased expectations that there may be more quantitative easing.

“Draghi gave some insight that implied that there could be more QE coming, and the market likes the sound of that as it can give a little support to the European economy,” Olivier Jakob, analyst at Petromatrix in Zug, Switzerland said.

However, broad market sentiment remained bearish as producers around the world pump 1 million to 2 million barrels of crude every day in excess of demand, creating a huge overhang of stored oil.

Iran’s return to the oil market this month added to the glut, after the lifting of international sanctions to discourage the country from obtaining nuclear weapons.

“There are worries surrounding demand and oversupply,” said Hans van Cleef, senior energy economist at ABN Amro in Amsterdam.

He said weaker demand in the Middle East, which has been hit by lower oil prices, could add fuel to the sell-off and there was little to stop crude falling to $20 per barrel.

Indicating the glut may grow further, Iraq’s Oil Minister Adel Abdul Mahdi told Reuters the country’s southern region planned to increase output by up to 400,000 barrels per day (bpd) this year to over 4 million bpd.

Meanwhile, Venezuela has requested that OPEC hold an emergency meeting to discuss steps to prop up oil prices, although delegates from other members of the producer group said such a meeting was unlikely.

btw, I wouldn’t object if the Feds raised taxes on gasoline or diesel sales…our highways and bridges need work desperately!

96

[QUOTE=c.captain;177490]although inventories rose by more than expected, the price for WTI crude this morning is stable…this is good, maybe we have bottomed out

btw, I wouldn’t object if the Feds raised taxes on gasoline or diesel sales…our highways and bridges need work desperately![/QUOTE]

As if they would actually use the funds to repair infrastructure. . . .

97

Yeah, I don’t think I would run out and finance that brand new Mustang yet, ha ha. Ya might want to wait just a little longer.

98

Yahoo News
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Navy carrier group powered partly by biofuel sets sail
By JULIE WATSON
16 hours ago
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SAN DIEGO (AP) — The Navy on Wednesday launched its first carrier strike group powered partly by biofuel — a mix made from beef fat — calling it a milestone toward easing the military’s reliance on foreign oil.

The maritime branch touted the warships as the centerpiece of its “Great Green Fleet” — part of a Navy-wide initiative that aims to draw 50 percent of its power from alternative energy in four years.

For now, the mix fueling the ships is only 10 percent biofuels and 90 percent petroleum. The Navy originally aimed for a 50-50 ratio, but the cost was too high, though that could change as competition grows in the alternative fuel industry, Navy Secretary Ray Mabus told The Associated Press.

Mabus and Agriculture Secretary Tom Vilsack inspected the carrier group’s ships Wednesday off San Diego, where the nuclear-powered aircraft carrier the USS John C. Stennis and the guided-missile destroyer USS Stockdale were preparing for a seven-month deployment. The Stockdale and three other ships are the first to begin operating regularly with a blend of biofuels and petroleum.

“It gives us a strategic advantage,” Mabus said of the Navy weaning off fossil fuel. Turning to alternative energy will give the military options so it is no longer at the mercy of fluctuating oil prices and oil-producing nations that may not have U.S. interests in mind, he said.

A sailor checks a sample of fuel during a refueling at sea aboard the USS William P. Lawrence guided …
Vilsack called the Navy’s “Green Fleet” a “tremendous opportunity” for the biofuel industry that will benefit farmers and create thousands of jobs.

The officials boarded a helicopter to watch the USS William P. Lawrence replenish its tanks with the blend of biofuel, which is made from beef fat from Midwestern feedstock and produced by California-based AltAir Fuels.

Critics, including environmentalists, say biofuel production is too costly and on a large scale may do more harm than good if it requires the a lot of farmland, fertilizer and fuel to produce.

Mabus contends no land for food production will be used for the biofuels.

The Defense Department is the world’s largest consumer of energy, and the Navy uses more than a third of that, but Mabus said going green is not just about reducing the Navy’s carbon footprint.

Fuel lines connect the USS William P. Lawrence guided missile destroyer, right, with a tanker during …
“In 2010, we were losing too many Marines in convoys carrying fossil fuels to outposts in Afghanistan, and the prohibitive cost of oil was requiring us to stop training at home in order to keep steaming abroad, a dangerous and unsustainable scenario,” he said in a statement.

All military branches are looking to cut their ties to foreign oil as part of a national security strategy. The federal government has invested more than $500 million into drop-in biofuels, which can be used without reconfiguring engines.

All ships and aircraft in the Navy have been certified to use biofuels. The fleet also includes nuclear vessels and hybrid electric ships.

The Navy bought 77 million gallons of the 10 percent biofuel mix at $2.05 a gallon to fuel its ships off the West Coast this year. Similar contracts are in the works to fuel ships elsewhere.

The purchase comes after a 2012 demonstration on the Navy’s use of alternative fuels drew fire from lawmakers outraged at the $26-per-gallon price tag. Legislators passed a law prohibiting the Pentagon from buying biofuels in mass unless the price is competitive with that of petroleum.

The guided-missile destroyer USS Stockdale leaves Naval Base Coronado Wednesday, Jan. 20, 2016, in C …
Retired Navy Capt. Todd “Ike” Keifer, who has published a study on the Navy’s plan, said adding 10 percent biofuels into the mix will not help the environment. He said he does not believe the Navy will ever get “any meaningful quantities of cost-competitive biofuels.”

Mabus said the technology is evolving quickly and, in the future, biofuel made from landfill waste, wood chips and even food waste may usher in lower prices for a blend with a higher content of biofuels.

“That’s going to continue to expand as the biofuel industry ramps up,” he said.

99

oil moving up significantly this morning after a good day yesterday…have we seen the bottom?

[B]Oil Prices Rally Above $31 a Barrel on Central Bank Stimulus Hopes[/B]

By Nicole Friedman, Georgi Kantchev and Jenny W. Hsu

Updated Jan. 22, 2016 9:42 a.m. ET

Oil prices rallied above $31 a barrel on Friday as investors hunted for bargains after a volatile week and bet that fresh stimulus measures by major central banks would improve demand for the beleaguered commodity.

Oil was also boosted by cold weather on both sides of the Atlantic, which is fueling hopes of improving demand for heating oil.

Money managers, including hedge funds, have amassed an unusually large number of bets that oil prices will fall in recent weeks. Given the confluence of bullish factors in recent sessions, some of those traders are likely closing out positions, analysts said.

However, some market watchers warned that this rally could be short-lived, as the global glut of crude that sent prices plunging to 12-year lows continues to persist. U.S. inventory data released Thursday showed that stockpiles of crude oil and refined products grew last week.

“This rally was not about inventories but about confidence coming back into the global market place,” said Phil Flynn, analyst at Price Futures Group, in a note.

Light, sweet crude for March delivery recently rose $1.68, or 5.7%, to $31.21 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose $2.02, or 7%, to $31.27 a barrel on ICE Futures Europe.

European Central Bank President Mario Draghi hinted Thursday at more easing measures amid renewed pressure on inflation in European economies from falling oil prices. Traders also speculated that Japan’s central bank might increase its asset-purchasing program at its end-of-January meeting.
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Stimulus measures can increase demand for oil products.

The gains in crude came despite another increase in U.S. oil stockpiles that underscored the persisting glut of crude around the world.

In addition, traders are preparing for an influx of supply from Iran, now that sanctions on the country have been lifted. An Iranian official said this week that Iran is tentatively preparing to ship at least a million barrels of crude to the European Union as early as February.

“Sometimes the oil market works in mysterious ways,” said Michael Poulsen, an oil analyst at Global Risk management. “The fundamental short-term oversupply situation has not changed, though.”

The pessimism about oil prices, which once surpassed $145 a barrel in 2008, is mainly driven by the high-paced production of major suppliers like Saudi Arabia and Russia, which are unwilling to curb output. The deceleration in China’s economy is also dimming the outlook on oil demand.

Crumbling prices over the past 19 months have eroded the national coffers of several oil producers like Venezuela and Nigeria, which have been urging the Organization of the Petroleum Exporting Countries to cut production to force prices higher.

The request has largely been ignored by the cartel, led by Saudi Arabia, which has repeatedly said a cut in production would only be considered if non-OPEC producers are also willing to trim their output.

“Most producers would rather sell at a steep discount than lose their existing customers,” said Gao Jian, a Shandong-based commodity analyst at SCI International. “It is hard to see a bottom.”

Gasoline futures recently rose 4.3% to $1.0758 a gallon. Diesel futures rose 7.2% to 96.23 cents a gallon.

100

Doubt it, just some bargain hunting. With everything going on I doubt it’s the “bottom.” I don’t think prices have too far to go below $25 though. That’s what some were calling for a year ago and everyone else laughed.

101

[QUOTE=z-drive;177548]Doubt it, just some bargain hunting. With everything going on I doubt it’s the “bottom.” I don’t think prices have too far to go below $25 though. That’s what some were calling for a year ago and everyone else laughed.[/QUOTE]

The raise may be a knee jerk reaction, or some smart speculators riding the conspirator theory wave?

Weather today and the next week or two has little to do with the realistic demand for oil in March to June, which they are “betting” on now.
Just like the stock market this is another “casino game” and has little to do with reality.

102

[QUOTE=ombugge;177556]The raise may be a knee jerk reaction, or some smart speculators riding the conspirator theory wave?

Weather today and the next week or two has little to do with the realistic demand for oil in March to June, which they are “betting” on now.
Just like the stock market this is another “casino game” and has little to do with reality.[/QUOTE]

That is exactly right. Speculators are just buying the dips and selling the peaks.

It’s does not matter to them whether the longterm trend is up or down, or whether it’s oil or something else, they make money on lightning fast very short term trades either way. It’s a casino and it’s rigged in their favor.

104

[QUOTE=lm1883;177560]Everything that I’ve read indicates China is going to unwilling to embark on a stimulus program, but I guess we will see.[/QUOTE]

The actual cost of oil may, or may not, go much lower in the rest of the world, but unless the Fed reverses direction (unlikely) on interest rates, or has a new round of QE, the price oil in dollars is bound to go down as the dollar strengthens against other currencies. It won’t be too long before the dollar is at parity with the Euro. It’s within 9 cents now.

There is a lot of turmoil in Europe caused by the refuge crisis. They were talking this morning at Davos about the end of the Schengen Area unless a solution to Syrian migration is found soon. The U.K. Is talking about withdrawing from the EU. No way to know how this turmoil may affect the price of oil regardless of supply and demand fundamentals.

105

[QUOTE=tugsailor;177559]That is exactly right. Speculators are just buying the dips and selling the peaks.

It’s does not matter to them whether the longterm trend is up or down, or whether it’s oil or something else, they make money on lightning fast very short term trades either way. It’s a casino and it’s rigged in their favor.[/QUOTE]

The traders were doing the exact opposite, they were selling low covering short positions - just returning borrowed stock. That in turn drove the price up as they were taking profit margins before the weekend. Happy Friday!

106

oh you must mean the traders’ algorithms that do all the hard work while they do Lines of Coke off strippers’ asses?

109

crude going down again today…looks like the end of last week was only a very short term anomaly in the market.

DAMNED!