Fuel Prices are WAY Down!!
Our Magna gasoline here in Zihuatanejo at the Pemex has dropped from over 19 pesos per liter to just over 13 pesos per liter as of yesterday. That is a huge drop and makes fuel much more affordable...
Forum Discussion
The danger as I see it is if prices get too low, production will shut down. When the economy comes back, if it comes back too fast, there will be a oil production shortage and prices will rocket.
Oil, currently around $20.00 a barrel production is probably not profitable in some places.
I asked an oil & gas guy who was pitching an investment at a lecture if $30. barrel was profitable (this was four years ago).
He said it still was profitable.
I doubt if $20. a barrel will be profitable for long.
We could be in for a whip-saw economy near future.
Oil, currently around $20.00 a barrel production is probably not profitable in some places.
I asked an oil & gas guy who was pitching an investment at a lecture if $30. barrel was profitable (this was four years ago).
He said it still was profitable.
I doubt if $20. a barrel will be profitable for long.
We could be in for a whip-saw economy near future.
