Oil prices fall further below $50 a barrel On Iran Deal

[TomCADem]

Source: USA Today

Oil prices fell further Thursday a day after U.S. benchmark crude tumbled below $50 a barrel for the first time since April as bloated U.S. inventories and the prospect of increased Iranian crude shipments fueled concerns about swelling supplies even as demand is waning.

"We've had a lot of supply," says Tom Kloza, global head of energy analysis for the Oil Price Information Service. "Now the worry is that demand is going lower."

West Texas crude for September delivery fell 67 cents, or 1.4%, to $48.53 a barrel after dropping 2.3% on Wednesday. That's down about 20% from a recent peak of $61.01 in late June.

The Obama administration's proposed nuclear deal with Iran would lift sanctions and could allow that country to ship significantly more oil, adding to a recent surge in supplies from Saudi Arabia and Iraq. A Senate hearing on the agreement is scheduled for Thursday.

Read more: http://www.usatoday.com/story/money/2015/07/22/oil-prices-tumble/30538053/

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The print edition of USA Today has a title that explicitly links the fall in oil prices to the Iran deal, but it has since been changed in the online deal. Also, if you search, the prospect of falling oil prices is actually described in negative terms as a fear of an oil glut. For example, the Wall Street Journal:

Iran Deal Raises Prospect of Fresh Oil Glut

The Iran deal is an excellent example of Naomi Klein's shock doctrine on display. High oil prices means higher profits for the Koch Brothers. More insecurity in the middle east and war means more money for the war profiteers. So, while consumers and the overall economy might benefit from lower oil prices, the billionaires who fund our political system are worried about their bottom line.

[Galileo126]

1. And yet... I'm still paying $4.25 a gallon for gas - fuckers. - nt

[busterbrown]

3. Where are you?

Los Angeles $4,50.. WTF....Where are all our investigative reporters? Oh I know...Giving Donald Dump 24/7 coverage,,,

[Galileo126]

8. North LA county (high desert) -nt

[TomCADem]

5. Due to More Oil Price Manipulation By Oil Companies (see story)

The high gas prices, particularly on the West Coast, is just another example of oil price manipulation. On the West Coast, the reported reason has been due to maintenance at a major refinery.

Buy gas ASAP: A 30-cent hike coming your way because of low supply on West Coast

There have been no major refinery issues reported recently. A Phillips 66 refinery in Wilmington is undergoing planned maintenance, which had a minor impact on supply, but it is not the only reason prices rose.

Jamie Court, president of the nonprofit Consumer Watchdog, said the rapid price increase is in large part a result of a manipulation of prices by the oil industry.

“There’s an opportunity to charge a premium in the market because of the tight supplies. There’s no good reason for the wholesale price of gasoline to go up this much,” Court said. “The problem is the oil refineries are keeping us running on empty to charge higher prices and make a larger profit.”

California has one of the highest gas prices in the nation because of high taxes and environmental standards. Court said California drivers pay an average of 74 cents more per gallon than the national average.

[mpcamb]

2. No matching drop in at-the-pump price

[Ed Suspicious]

4. Danger of an oil glut? Who benefits from restricted oil production? It seems to me, nobody but the

oil companies and perhaps states who tax as a percentage at the pump. I fail to see any economic downside to cheap oil (environment aside).

[Adrahil]

6. Well, the down side of an oil glut....

Is that there is reduced incentive to actually develop viable, non-greenhouse gas producing energy alternatives.


ALso.... it's make Nicholas Maduro and Vladimir Putin very sad when oil prices go down.

Also, Oil frackers don't like it.

[frylock]

7. Hey, cool. Maybe that's why the price of a gallon dropped .02 after going up .75 in one week.

[truebluegreen]

10. No wonder Republicans are so dead-set against the deal,

and why they so eagerly want to bomb Iran. Gotta look after their constituents the oil companies (the invasion of Iraq was more about keeping Iraqi oil off the market than seizing control of it, imo).

[DirtyHippyBastard]

13. +1. nm

[riversedge]

11. gas prices have not budged for several weeks here in mid WI

[pscot]

12. which makes drilling in the Arctic

seem even more stupid and pointless.