Oil is currently hovering around $40 a barrel. An absurdly low price. I have dropped more than forty bucks to feed my family lunch at Wendy's for christs sake.
We are now in the realm where almost no fracking in the US is profitable. The prime spots in the Texas Permian basin have around a $36 per barrel break even point.
A lot of countries and petro companies are auctioning off materials and drilling rights just to stay in the black.
Most OPEC countries are running a budget deficit.
Canada is losing money on its oil sands. They are only still going because that operation is too big to stop.
China has given up on maintaining domestic production, and letting that dwindle down as Arab countries lowball themselves to get their business.
And the US the only country who releases the only accurate and current data on inventory and production numbers dropped these bombshells this week. Gasoline inventories had a large drop, oil inventories dropped, and oil production remained flat.
And oil still hovers around $40 a barrel.
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