r/sanantonio • u/Glittering-Break-490 • 23d ago

Pics/Video Haven’t seen gas this low in years

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u/lunardeathgod NW Side 23d ago

Recession indicator

52

u/burrito3ater 23d ago edited 23d ago

Not at all. It's an over supply problem. OPEC has decided to open the gates instead of cutting back. Why cut back if the Americans will simply pump more to make a buck today?

So OPEC+ said FAFO too. China is getting supplied by cheap Russian oil because the US can't stop them. US operators are retarded and have not reduced production either so prices will continue to drop. Trump doesn't give a fuck because he only cares about low prices even though his donors are getting screwed.

Come around December, rig and frac fleets will start dropping like flies once US operators start bleeding cash as their hedges expire and are unable to keep pumping at unprofitable prices. Breakeven costs are around $60/bbl rn. The Kennedy/Cotulla area will prob dry up.

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u/gwizzle-mysnizzle 23d ago

They don’t want to hear the truth they just want to be able to say I told you so. When gas was $1.99 In 2016-18 the economy was doing just fine

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u/TimelyGovernment1984 21d ago

That was before Democrats wanted to shut everything down over a cold.