When will oil prices go back up

While oil prices were high and everyone was trying to get the best economy out of there trucks Peterbilt came out with this road test with the latest 579 model powered by a Cummins ISX15 engine, achieved 10.7 mpg during testing last month between Denton, Texas, and Vernon, Texas. The 312-mile route was the same one used two years ago, when the first version of the Cummins-Peterbilt SuperTruck averaged just under 10 mpg. The testing in both instances was conducted on a round-trip basis, to negate any wind advantage that might have been gained by traveling one way, and each tractor-trailer had a combined gross weight of 65,000 lb running at 64 mph. I love to see what the mile/per gallon rate would be with 79,000 lb running at 75 mph that would be closer to most truck weights and speeds unless you drive for swift!

 

It goes up and it goes down, just like all commodities. When it's back to $4.80 a gallon in a few years, you'll miss this $1.78 you're paying at the pump now. I remember back in 2008 when Obama was just elected, we were paying close to $5 a gallon in Portland Oregon.

 

Oil will go back up once the Saudis bankrupt themselves. The theory that it only costs them $10-$15 a barrel to produce is BS. They need oil at $50 a barrel or higher to maintain their budgets and lifestyles. OPEC is already whinning that they need to work with non-OPEC producers to reduce production. I say let the free market throw them in the grave they've dug for themselves.

 

Oil will go up and down many more times...

The world is in a recession, a long recession, demand is down, prices are down, and YES the saudi elite can afford to produce oil at $15, and make a profit.

The Saudis could not bankrupt themselves in our grandchildren's life time. They have access to recoverable oil, with simple methods, and NO EPA telling them they cant pump sea water into the field to increase the pressure and recover more oil.

 

economists disagree
While the country’s all important oil sector was the main drag behind the deceleration observed in Q3, recent data suggest that the current cheap-oil environment is also eroding activity in the non-oil sector. In January, the non-hydrocarbon PMI hit its lowest value in the six-and-a-half-year history of the survey. Moreover, on 20 January, oil prices hit a 14-year low, which promises to put a dent in the Kingdom’s economic performance and the government’s coffers. Although Saudi Arabia’s huge reserves and low debt shield the country against a sharp economic downturn, prolonged low oil prices have the potential to severely hurt the economy. In this regard, the 2016 budget included spending cuts and a gradual removal of some subsidies. Moreover, Saudi authorities have started to consider the possibility of selling shares of Aramco, the giant oil company owned by the Saudi Arabian state.

 

So I can go back to work making $1,000 a day as a company driver. Until then I'm stuck driving LTL for pennies on the dollar.

 

The price of milk is regulated by the federal government unlike most other commodities so you can't make reference to the price of milk to make a point about the economy it's better to make reference to the price of grape juice or something that is not regulated by the federal government.

 

You should be pretty stocked from making a 1k a day. In the good years you store up for the bad years.

 

That would be true for most people with common sense but considering I barely got a taste of making good money before my ex decided she wanted to get divorced I was kind of unprepared for the situation.
Most of what I had stocked up had to be sold to finance my divorce attorney and protect my kids.
Divorce attorneys are really expensive. Fortunately for my kids I played all the right cards and came out on top of the situation.
I still have major recovering to do in regards to finances. Any financial recovery is going to have to wait until oil prices go back up. Until then I'm just treading water staying afloat.

 

I have a sister that does commercial insurance in Edmonton. Says they are averaging 3 or 4 companies a week that have been parking trucks and sending drivers home. The ones still hanging in are sending out trucks to haul grain, or anything else they can, lowering the rates for the rest of us.
Some have even started to run into the USA to keep afloat.