Where is the bottom?

[BoaterGuy]

Another convincing argument that the drop is not supply-demand driven.
https://www.bullionstar.com/blog/ko...s-location-and-it-revolves-around-the-dollar/

The United States declared economic war on Russia. It is hard to pinpoint the why of the matter but in this author’s opinion it always comes back to US dollar dominance. Russia has made no secret of its disdain for the global pricing mechanism of oil. The chart below shows what matters in the pricing of oil and it has zero to do with shale miracles or over supply.

It is the dollar and only the dollar that matters in the pricing of oil with an exception being an act of nature.

Much like the gold market, supply and demand fundamentals are completely ignored as the pricing of gold revolves around the dollar. Countries such as Russia understand fully that this dynamic of dollar dominance leaves them very vulnerable to shocks. The same is true of all resource rich countries. While some of them see the US as an ally and go along with this, Saudi being the obvious one, the Russian’s have made it clear they want change. Make no mistake about it the Russian’s will get the change they desire.

The chart below shows the dollar against the Ruble. That chart is an act of economic war as the West has attacked the currency of a sovereign nation for UNECONOMIC reasons

Let me explain the previous sentence. Russian debt to GDP is roughly 14%. Their debt to GDP is pristine. Japan’s is 227%, Greece 175%, Italy 132%, and the US 105%. Now can someone kindly explain why a currency would implode like the Ruble when their financial condition relative to the West and Japan looks like a Ferrari among a bunch of Ford Pintos? You could argue that they are highly dependent on oil. True, but so are other nations and are you certain oil will remain this low for an extended period?

The next chart is the dollar against the Kuwati Dinar, a nation wholly dependent on hydrocarbons. Certainly the dollar has rallied against it but that chart is not even a faint resemblance to the Ruble.

Now, how is the US able to pull this off without a hitch? Ladies and Gentlemen may I show you why the Saudis are NEVER spoken ill of in the US no matter what they do. The Saudi Riyal is PEGGED to the dollar at 3.75 to 1. This occurred in 1986. Why is this crucial? Simply compare the chart below to that of the Ruble and you have your answer.

sn’t it odd that you don’t hear anyone talking or writing about challenging this currency peg?
And finally in March of this year, Louis Woodhill began a column for Forbes with the following:

“How should the U.S. deal with Vladimir Putin’s invasion of the Ukraine? We should do to Russia what Ronald Reagan did to its predecessor, the old Soviet Union. We should drive them into bankruptcy by stabilizing the U.S. dollar.”

 

[BigN8]

That all seems to make sense........granted after I read it 5X, BUT, I don't think anyone in our government is smart enough to cripple a country like Russia with economics. Especially how we have f'd up our own currency and debt with mortgage crisis and bank insolvency.

 

[Britboater]

Afraid not @Julian , the toxins are far worse, plus the amount of tech modern Diesel cars have to run just to get to an emission standard is worrying, as an Audi mechanic told me "never have a modern Diesel out of warranty".
Don't get me wrong Julian, I'm not knocking your car, my wife has an A5 with the fantastic 3.0L, twin turbo V6 diesel, pulls like a bloody train and rips the tread of the tyres, but we just couldn't justify the S5 because of the fuel economy.

http://www.dailymail.co.uk/debate/a...erts-say-green-fuel-killing-thousands-us.html

 

[Julian]

Afraid not @Julian , the toxins are far worse, plus the amount of tech modern Diesel cars have to run just to get to an emission standard is worrying, as an Audi mechanic told me "never have a modern Diesel out of warranty".
Don't get me wrong Julian, I'm not knocking your car, my wife has an A5 with the fantastic 3.0L, twin turbo V6 diesel, pulls like a bloody train and rips the tread of the tyres, but we just couldn't justify the S5 because of the fuel economy.

http://www.dailymail.co.uk/debate/a...erts-say-green-fuel-killing-thousands-us.html

OK, I can't find any data to support or refute the cleanliness of new "clean diesel" vehicles in comparison to gas ones. All I can say is I detect no difference between my diesel and my gas vehicle (a very technical perspective...not...LOL). What It does say that a diesel produces 20% more CO2 than a comparable gas engine. But since they are usually 25-30% better in efficiency, that translates to lower per mile CO2 emissions. There have to be some quantitative tests on the other emissions claimed in the article. I must admit I have trouble believing any studies out of California....linking autism to diesel emissions....huh....

But to call a clean diesel smelly and sooty....no way!

 

[scot71]

Regular is $1.98, Diesel is $2.89 in our little town here in Indiana.

 

[BigN8]

I thought this was an interesting read

http://finance.yahoo.com/news/how-obama--and-bush--helped-puncture-oil-and-gas-prices-172500857.html

 

[BigN8]

Well..... My guess was wrong. Just saw $1.89 in Lake Dallas,TX.

 

[jawsf16]

$1.86 in Tulsa...

 

[GTBRMC]

$2.34 avg in Milwaukee area

 

[Ronnie]

I paid $2.87 at a local gas station (not costco yesterday. $1.86 is awesome, I don't think Californians have seen gas prices like that for over a decade and we are not likely to see them again ever.

 

[Jim Robeson]

$1.88 in Springfield, MO!!!

 

[Raphael]

$2.01 at Sam's Club in South Jordan Utah, I wish it were summer.

 

[jawsf16]

Down to $1.81 in Tulsa now. It dropped a penny while we were at lunch!

 

[Jim Robeson]

I really never imagined this at all. But I am a believer that it can go right back up as fast as it has come down...if not faster!!

 

[BigN8]

I think we are having a 90's flashback. Gas is $1.80 and the Cowboys are Super Bowl contenders!!

 

[BlacklimitedS]

Both of those would have carried 10,000 to 1 odds in August!

 

[scot71]

I love seeing these low gas prices but these low oil prices are gonna mess with my overtime this winter. Because we supply alot of engines to the oil companies for drilling rigs these low oil prices are causing them to back off on adding new capital. So, down go our orders and overtime along with it. Oh well, at least I'm only worrying about overtime and not my job. There's always a silver lining.

 

[Ronnie]

$2.39 for 87 octane at Costco here in Union City, CA.

 

[Murf'n'surf]

Down to $2.57!! I enjoy filling my tank for under $100 --- I feel like i'm robbing the store!

 

[GiddYupJoe]

Down to $2.57!! I enjoy filling my tank for under $100 --- I feel like i'm robbing the store!

$1.95 last night in Dayton. While I was filling up the SUV for less than $45 I actually thought about just driving around in circles for a while than going back and getting more! Just to get that smile again of filling up for so little.