US crude tumbles 12% from high as oil bulls retreat

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And and anytime you see the stock market going wildly up and down like it has been the same thing's going to be happening with the price of oil because that just creates uncertainty in the market and investors and crude oil traders in crude oil traders in any other commodity or in in stocks. They don't like uncertainties. And so that's a big reason. Why? You know, we have seen this drop. Whereas the previous nine months, I mean throughout the course of this year through August. We had some of the lowest levels of volatility in the crude oil markets I've ever seen frankly, I mean just night and day compared to twenty fourteen three twenty seventeen. Just the steadily slow rising. Crude oil price getting up into that seventy five dollar range, which is where by the way, the OPEC oil ministers want it to be they want Brent brand around eighty dollars. They want. West Texas intermediate to be around seventy five and so they had gotten it to that level. But then all this uncertainty hit about one of the big factors. That's going on right now. Is is uncertainty about what's happening with China's economy. There is a growing I think conventional mindset among economists that economic growth in China is the the rate of increase is slowing down. You know, it's no longer growing seven or eight percent. It's growing more like four or five percent like our economy. And and so when you know economic growth drives demand for crude oil, and if the first of this year, the United Nations the International Energy Agency, they they do projection for what global crude demand is going to be the growth in crude demand will be in the coming here. And they said, okay, it's going to be about one point two million barrels a day, you know, ear over year. So at the end of this year, they projected that crude demand would be one point two million barrels higher than what it was. At the end of last year. And then we got to may and economic growth was really stronger than they anticipated. If you remember we had four percent growth in the United States in the second quarter, which was very high compared to the last eight or ten years, and and so they revise that up to one point four million. So they sought okay, economic growth stronger. So we're going to say we're going to have more demand for crude. Well couple of weeks ago. They said, okay. You know, maybe it's not that much stronger and looks like China slowing down. So we're gonna take that projection to be back down to one point two million and OPEC does their own projections. The US energy information administration does some projections like that. And so, you know, everybody's going up and down those, and it's all because it's just based on what's what is happening with economic growth, mainly in China, but also India, Indonesia, separate ram countries and here in the US. And David is so important because I don't think that we who are outside of oil and gas. I mean, if you're inside oil and gas, you kind of get this, but outside I don't think a lot of people really understand that it isn't just affecting if we're fracking here were doing hydraulic fracturing. We're doing we're we're exporting were importing deserve world commodities, and what's going on around the globe affects prices here too. And it's also regulation too. Because when you were talking about how we're paying a lower price here in Texas. Well, it's so strange you say that because my son actually who lives in Las Vegas sent me. A snapshot of the prices over there in California. They're they're paying at the pump. You know, they're at five zero five a gallon, which we would probably just blow a gasket if we were paying that kind of amount per gallon. But there's things regulation that matter. And so this is why I think that when we talk about on our show. Oh, how oil prices how good? They are how they affect us as every day with rather it's economically rather. It's pertaining to your job these things matter and oil, and what's happening in the market does matter, and we need to understand it as well. The reality is in California, they want their government has as intentionally developed those as you say regulations matter in and that is an intentional effort in the state of California to make gasoline more expensive to consumers in order to promote the adoption of electric vehicles and renewable fuel so so that's a conscious decision. California's state government has made and you know, our heart government here in Texas has made different decisions. Very interesting. Well, you know, we also have. Commissioner Ryan Centene has gone into partnership with in the oil patch radio show, and he produces every day these segments called the in the oil patch energy minutes with Commissioner Ryan Sitton, which of course, we know is one of the three Texas railroad commissioners, and you know, every day we produce these on our Facebook page. So anyone who has liked our Facebook post or goes in and does like our page can actually get the updated in energy minute from Commissioner sent in every day. And they run on iheartradio to for people who listen to KTAR h in Houston and others stations around the state, the energy minutes, Ron on iheartradio with those stay exactly and Midland station in Midland. You know, and we know why I think we were committed to doing this is because again, if you get a snapshot of everything that's happening today energy and Commissioner sent and puts it in one nice little minute package for you to understand it gives you a really quick. Synopsis of what's happening

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