Price of Copper

[Geronimo Jim]

Price of copper falls to a 4 1/2 year low per Wall Street Journal. Think bullets
will come down? Nope, me neither.

 

[Joe Salt]

You are going to keep paying for what they have already bought, and that may be for ever! Kind of like gas you see it when the oil price goes up the gas goes up really fast, but when oil price goes down gas still hangs there like now. Still $2.76 here.

Joe Salt

 

[chkunz]

Gas under $2 and dropping here in the sunny south.

 

[JimT]

I paid $164.9 at Costco yesterday, today it is down to $159.9. I guess your theory only works where you live.

 

[rmist]

259 in PA.... A whole dollar more

 

[Jason Boersma]

$1.87 in SD diesel $2.99

 

[snert]

2.69 in Upstate NY...freakin taxes!

 

[jonbearman]

If they invested heavily in a commodity that changes everyday going up and going down, I would fire every buyer or anyone that made a foolish move like that. They will keep the price up till they meet saturation in the market which could be some time . They buy copper like we buy gas at the cheapest available gas station feasible to drive too.

 

[Syncrowave]

They've got to get what they paid for copper when they made their existing inventory. Until that inventory is sold, prices remain high. By the time bullets made with the new, cheap copper reach the shelves, the spot price of copper will have risen again, so they won't have to reduce prices. Funny how that works, eh?

 

[North Fork]

228 in Salmon Idaho

 

[LCazador]

Half price gas, I like the tune. I don't like what it could do to our economy and our jobless population. Right now it costs more than $70 a barrel to break even. So what do we do with our oil, what do we do with all the oil workers now working? We can't meet the Arab competition at less than $56 a barrel. In the mean time UPS just increased their rates as of today and airlines aren't reducing their rates. We won't see copper prices affecting our shooting needs as long as the current demand and inventory exists. Hats off to those in the industry who have held prices to the minimum!

 

[Chappy]

$2.18/85.5 octane and $2.97/diesel here in Helena.

 

[JRS]

Sounds like we need to lower the salaries of a few of the producers owners here in the US

Cost to produce a barrel in the Mid East: $16.88 - in the US: average of $33.76

 

[people]

Here there is no real competition. So price drops very slow and raises faster than they can get the gas.

As to the bullets. Why drop the price when they are still flying off the shelf?

 

[JimT]

Half price gas, I like the tune. I don't like what it could do to our economy and our jobless population. Right now it costs more than $70 a barrel to break even. So what do we do with our oil, what do we do with all the oil workers now working? We can't meet the Arab competition at less than $56 a barrel. In the mean time UPS just increased their rates as of today and airlines aren't reducing their rates. We won't see copper prices affecting our shooting needs as long as the current demand and inventory exists. Hats off to those in the industry who have held prices to the minimum!

Your breakeven numbers are different than what I have heard, if yours are correct we would not have a single rig working in the US today. I am heavily invested in US energy companies and the recent slide is not fun (but I am buying more). However, it is estimated that if gas prices stay about where they currently are it will result in an effective $100 billion "tax cut" for the US economy next year (add up the 4 largest US oil service companies TOTAL stock market value and you don't get to $100 billion). Apply this same "tax cut" worldwide and you have a very large stimulus being gained everywhere refined oil products are consumed. As for UPS and the airlines, you might want to buy their shares. In conclusion, while there will be fallout in the oil and gas exploration industry the economic impact should pale in comparison to the economic benefit lower petroleum product prices will bring.

 

[JRS]

Half price gas, I like the tune. I don't like what it could do to our economy and our jobless population. Right now it costs more than $70 a barrel to break even. So what do we do with our oil, what do we do with all the oil workers now working? We can't meet the Arab competition at less than $56 a barrel. In the mean time UPS just increased their rates as of today and airlines aren't reducing their rates. We won't see copper prices affecting our shooting needs as long as the current demand and inventory exists. Hats off to those in the industry who have held prices to the minimum!

Your breakeven numbers are different than what I have heard, if yours are correct we would not have a single rig working in the US today. I am heavily invested in US energy companies and the recent slide is not fun (but I am buying more). However, it is estimated that if gas prices stay about where they currently are it will result in an effective $100 billion "tax cut" for the US economy next year (add up the 4 largest US oil service companies TOTAL stock market value and you don't get to $100 billion). Apply this same "tax cut" worldwide and you have a very large stimulus being gained everywhere refined oil products are consumed. As for UPS and the airlines, you might want to buy their shares. In conclusion, while there will be fallout in the oil and gas exploration industry the economic impact should pale in comparison to the economic benefit lower petroleum product prices will bring.

We've got a winner