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Page added on September 1, 2016
Oil Prices Crash as Traders Brace for End of Peak Demand Season
Oil prices crashed on Thursday, extending their losses from the prior session as a larger-than-expected increase in weekly oil inventories, and the approaching end of peak oil demand season had traders readjusting their positions, anticipating future losses.
Oil futures declined 3% on Wednesday, to close at a three-week low, but the commodity managed to gain 7.5% over the month of August. Oil futures rebounded in August after falling into a bear market. The rebound was sparked after OPEC members indicated that they would have an impromptu meeting at the end of September, on the sidelines of a conference in Algeria to discuss stabilizing the market. Still, there is doubt that OPEC members will actually come to an agreement to cut, or even stabilize production to calm oil’s volatility.
While there was optimism early in August about a possible OPEC production cut, this turned to pessimism after Iran repeated that it would not freeze production until it reaches its pre-sanction oil output levels, while smaller OPEC members have already communicated their unwillingness to cap output. In addition, with oil rebounding since OPEC initially announced it would meet, some of the incentive to cap production has evaporated.
After August’s advance, September could be a tough month for oil prices. If OPEC members fail to act, traders will want to unwind their bullish positions. At the same time, the Labor Day long weekend officially marks the end of peak demand season for oil, and that could also add downside pressure to the commodity.
Oil futures were slightly higher in early trade Thursday, due to some bargain hunting, but losses ensued and then accelerated as trading progressed. At last check, in early afternoon trade, oil futures were down 2.8% at $43.44 a barrel.
61 Comments on "Oil Prices Crash as Traders Brace for End of Peak Demand Season"
rockman on Fri, 2nd Sep 2016 10:42 am
Cloggie – On the other hand you have to admit that “peak oil” is getting a little tired and that it is not easy to stay on topic with an event that might as well occur in 2030…”. I agree. Nothing wrong with the discussion here (other then it holds little interest for me). But we have multiple threads in the forum posts for every point hit here. You’re correct: the discussion on this thread didn’t need to go on much further then my initial post. And there were probably a number of folks who would have joined the highjackers if the debate had been in the forums but they had already began ignoring this thread when it began to veer off topic.
But most here are free, white and over 21 (an old racist line) so folks can do as they wish. LOL.
Davy on Fri, 2nd Sep 2016 10:49 am
Clog, you have the habituated attitude of the status quo concerning history and fate. I acknowledge this as long as the status quo is in effect and in operating order. My opinion is within 10 years a huge changes will occurs making historic references void by reason of a great turning at all levels. In effect civilization as we know it will be no more. Why would German history mater if there is no Germany.
It takes time and discipline to convert to this new thinking especially considering we must survive through the status quo. I am the future you are the failed past. Your relevance ebbs daily mine increases. I have turn to Nature and rejected humans as the prime mover. It is a matter orientation to higher powers and humans are no longer the prime mover. In the process of creating the Anthropocene we destroyed ourselves. If this thinking sounds bizarre it is because normal is wrong and the bizarre is right. This is the paradox of the end game. Join or be swept away.
Cloggie on Fri, 2nd Sep 2016 11:10 am
@rockman – point taken. It is btw September again and after a very long Summer holiday I gradually have to crawl back to some computer owned by some yet unknown client, yet it is very difficult to disengage from discussions concerning hobby horses like history of the 20th century. No doubt to the relief of the patient admin I have said on the toe-curling topic what I wanted to say. Freedom of speech apparently is still a core American value, chapeau.
@Davy – as you have noticed I have fallen back to less of a catastrophic outlook on the immediate future, absent of war. I too expect huge changes in the coming 10 years, but more in the geopolitical and social realm, not so much in that of depletion or climate change. I still suspect that most of us will end up in a nursing home at advanced age, and will not end in a more dramatic fashion.
Davy on Fri, 2nd Sep 2016 12:27 pm
Clog, don’t get me wrong, I hope you are right about having golden years awaiting us but every day I wake up the light is dimming on a future of comfort and happiness. I don’t want to suffer and die prematurely. I especially want a future for my kids.
My ideas are esoteric but they need to be dwelled on occasionally so we occasionally separate ourselves from a reality that appears increasingly divorced from reality. I feel everything must be called into question. Nothing is sacred in regards to the truth.
Apneaman on Fri, 2nd Sep 2016 1:45 pm
Clogged, does drowning count as dramatic? That gonna be the fate of many and especially for those living and farming in a big salad bowl below sea level. Of course starvation and disease will get the most as it always does in overshoot.
Nine people killed in flooded Japanese old people’s home
http://www.reuters.com/article/us-asia-storm-japan-idUSKCN1160HN
Hurricanes and Climate Change
Increasingly destructive hurricanes are putting a growing number of people and structures at risk
“Factors that increase the destructive potential of hurricanes
The oceans have taken in nearly all of the excess energy created by global warming, absorbing 93 percent of the increase in the planet’s energy inventory from 1971-2010”
“Sea levels are also rising in response as the oceans warm and seawater expands. This expansion, combined with the melting of land-based ice, has caused global average sea level to rise by roughly 8 inches since 1880 [6]—a trend that is expected to accelerate over coming decades.
Higher sea levels give coastal storm surges a higher starting point when major storms approach and pile water up along the shore. The resulting storm surge reaches higher and penetrates further inland in low-lying areas. The risk is even greater if storms make landfall during high tides.”
http://www.ucsusa.org/global_warming/science_and_impacts/impacts/hurricanes-and-climate-change.html
MikeX11.2 on Fri, 2nd Sep 2016 3:28 pm
We’ve had 7 “500 year” events this year.
Even slow learning Republicans will catch on to global warming as it wipes out more assets in Republican Southern States, and insurance companies withdraw coverage.
This is a self inflicted wound.
Also, note, Trump is losing White College Educated Voters. Meaning the Fox Propaganda Model is Killing the Party.
When you’re Hysterically wrong 90% of the time White College Educated Voters start to leave the party. And with no support from minority voters, we’re watching Repubs commit seppuku.
When the party can tolerate a “thinker” like “Ann Coulter”, you know your on your deathbed.
Apneaman on Fri, 2nd Sep 2016 3:37 pm
Mike you’re calling Ann Coulter a thinker? How very generous of you.
Cloggie on Fri, 2nd Sep 2016 3:51 pm
“does drowning count as dramatic? That gonna be the fate of many and especially for those living and farming in a big salad bowl below sea level.”
Absolutely, but I live at +17 m.
For those who don’t, people move on average every 7 years. Time enough to prepare relocation and avoid drowning.
Sissyfuss on Fri, 2nd Sep 2016 5:17 pm
When their domiciles are inundated guess who’s property they will take up residence upon. Probably someone at 17m.
But you’re a people person,,ain’t you, Cloggenhoffer??
Apneaman on Fri, 2nd Sep 2016 5:18 pm
Sure clogO. Trillions in real estate and ports, airports along with some of the world’s best farm land can be rendered useless and we’ll all just move inland and everything will be awesome. I can’t wait for the Florida/Miami panic and rush to the exits. Millions of climate denying retards will be impoverished overnight and will be looking for someone to blame. Should be very entertaining. They’ll be america’s home grown unwanted climate refugees. You should be grateful cloggie that there are people in charge where you live who take it seriously and have made an effort to protect you people. It won’t last, but so what? How can less suffering be a bad thing? Where we’re going was inevitable. It could have happened centuries ago or in centuries from now, but it was simply not avoidable given our limitless reward seeking abstract brain. The humans technological evolution has out paced their psychological/emotional evolution by orders of magnitude – they not in control and will be going bye bye on account of it shortly.
The famed American biologist E.O. Wilson said it best.
“We have Palaeolithic emotions, medieval institutions and God-like technologies,”
makati1 on Fri, 2nd Sep 2016 5:58 pm
The ice melting on Greenland alone will raise sea levels 20 feet or 6 meters. The ice on Antarctica could raise it to 200′ (60 meters) if it all melted. That takes the US coastline to the west side of Interstate 95 in the US. Goodby to all of the East Coast, and most of the world’s cities. (Our farm is at 260′ elevation, potential beach front property. lol)
Will it happen? If the temps keep climbing, it is only a matter of time.