phil flynn on whether this will last. the slowing of demand because of the slowdown in europe and china is affecting oil price tremendously, isn't the u.s. production of oil through fracking and drilling, isn't that adding to the supply which lowers the price? >> it sure is, and creating a rift in the opec cartel. politically, economically, you name it. and what's happening right now in the opec cartel, they're actually raising production to test the mettle of the u.s. oil producer, i think they want to drive down prices to survive the lower prices, they're going to be surprised and we're going to be able to survive lower prices in the u.s. >> how low? if for example, oil goes down into the 70s, could we still produce oil domestically here in the u.s. at a profit? >> i think we can, dave. you know a lot of the shale producers are the most efficient in the world. technology is better than anything opec has in a lot of ways. and the other thing that the u.s. oil producer has going for them that some of the opec countries, t

joining me is phil flynn, price futures group and fox business contributor. good to talk to you. >> thanks, david. david: what happened today? why did it turn around today? >> i think combination, the stock market came back up. we had those comments from fed bullard yesterday and we definitely rebounded. we did have an inventory number today. we saw a big build in crude supplies. we sagas lien demand jumped. draw down in gasoline supplies. the combination of stock market not falling off the face of the earth coming back brought back oil prices at the end of the day. david: what is opec up to? >> i think this is their big gamble. think i they're going to try to bury the u.s. energy producer. some people think, oh, maybe they're going to try to bury russia or try to bury somebody else but if that were the case, why would the three biggest producers in opec banning together? you've got saudi arabia obviously, saying very clearly they're going to raise production. iran is going to do that. iran is very friendly with russia. that is not their main goal. then iraq.

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joining me now is fox business contribute phil flynn, phil, always good to see you. >> thank you. ready to celebrate. come on. if we break $3 a gallon, you and i are going out and partying. it's been four years. gerri: we're crying a river here at the network because it's bad for the industry, but for consumers it's a holiday. >> they're going to feel richer, they'll feel happier. people get rankier when gas prices go up. gerri: it's not juss being cranky. >> it is. they do and they feel down.r when prices go they have more money in their pockets. already we've seen in some of the data like the consumer confidence data, they're feeling better about the economy. it's amazing what lower gasoline prices can do for you. i'll tell you -- gerri: well, i was just going to ask you it's not just this day thing, goldman sachs looking forward several years, we'll continue to have low gas prices. how do they figure that? >> us oil production is continuing to boom. advertised on the air many times we're in a new era of gasoline prices. we have to thank the oil companies. we used to blame the o

i want to bring in phil flynn. phil, i know you were listening to this presentation. some people say it's coming far too late in this ebola -- with his own pr person described as an outbreak. what did you think of his comments. >> i agree with peter. i think he had to do something because fear is growing, and we've seen it in the markets. we've seen it in the concerns in many of the stocks of the airlines. this could be a major blow to the economy. president obama has a reputation of not being able to get ahead of issues. he seems to be coming from behind. and once again, i think on this particular issue, people are starting to get more and more afraid. he's trying to get ahead of this situation. he's trying to put it on the front burner. the traders on the floor were kind of laughing. they said this must be really important because he canceled a campaign fundraiser to have this meeting. this really gets to the point where they're obviously taking it seriously. gerri: we're going to have to leave it there. we have no time left. thank you so much for being with us toni

. >> phil flynn why don't you weigh in on this. i think there will be more to come on the downside only because opec can't control itself when it comes to pumping millions and millions of gallons. >> i think you're right, liz. this is a huge game of chicken right now. even today wade report from iran that said, there's going to be no emergency meeting. we're not worried about the price of oil. this is a lot of pressure right now. on opec. everybody is trying to figure out what is their endgame? are they trying to break the u.s. oil producer? are they trying to break russia or are they trying to get other none opec producer to say enough is enough. nobody knows right now, but it's a very dangerous strategy for opec for oil prices it's still -- liz: let me bring in john. john, you have more than a billion in assets. you're very bond focused that brings us to how the u.s. treasury is basically behaving or performed last week it became very weird, i think. and you got a very strong message from that, didn't you? recession obsession. wh

phil flynn in the pits of cme. also a fox business contributor. tell me more about the good news on the heating bills. consumers could really use it. >> well they could use some good news. they're getting it across the energy sector. of course one of the things i have to caution about this report here, part of it is based on assumption that we'll not have a winter like we did last winter. even at high-end and low end of the assumptions, melissa, in this report, they're basing these projections off the five-year average. if you look at four out of last five years, the winters were warmer than normal. if you get surprise, better watch out. it is good news f you look at natural gas production, what we did in this country, there was a lot of fear that we wouldn't get storage back to normal. what we haven't got back to the five-year average, we have produce ad record amount of natural gas this summer. we put more in storage. but part of that was because we had a cool winter. pricewise though, great news across the board. if you're talking about heating

we have phil flynn and patrick dehaan, senior petroleum analyst with gasbuddy.com.atrick, i will start with you, how low can these prices go? we saw a 12-cent a gallon drop over the weekend according to lundberg. how much lower? >> our projections continue to flirt lower as we continue to watch this evolving situation with opec. now iraq is jumping on the bus. we could see the national average decline under $3 a gallon the next two weeks. how low depend exactly what happens here on out. 2.90, 2.80. will it go lower? that is realistic at this point. gerri: patrick mentioned opec. what is going on in saudi arabia. talking about what is going on. what do you see? >> they say get ready for lower prices. it is a production war. it is on. probably one of the most significant production wars with opec from the early part of this decade or actually back in the 1980s. right now, you know, saudi arabia, laid down the gauntlet last week. they basically we're not cutting production. we're cutting prices. they have to cut prices because if they cut production the u.s. oil produc

let's ring and phil flynn. i interviewed both of these guys. there has never been any love lost.ems like it is worse than ever. >> the split is definitely getting wider. it is almost as different. basically right now what he is telling maria this morning, listen, the saudis cannot afford to play this game right now. we need to be cutting back production. they would be basically risking the economy with this strategy of sinking oil prices. they probably had a longer-term business. melissa: we do not care if prices fall. we can get used to it. phil, thank you so much. we appreciate your time. the ceo was killed when something collided with its private jet. the west coast. gearing up for opening night. we are on the ground with a live look at the preparations. baseball. ♪ ♪ melissa: i am melissa francis whittier fox business brief. sales of existing homes rose. ninety-two from august unexpected drop. major airlines raise their fares for passengers last week despite a drop in fuel prices. united, delta and american all height their prices around $4 for domestic flights. harley-davids

phil flynn what do you see that jumped out at you as soon as the fed announcement was made? >> you know, i was surprised there was any surprise in the market. it's interesting, i was listening to the debate that you just had on, on one hand, we're saying when rates go up, it hurts valuations and hurts the stock market, but i think at the same time when they lower rates, they do quantitative easing which is negative rates, it doesn't help the stock. you can't have it both ways. i think if i look at big picture. this is kind of a big turning point for the market. talking about ending qe, the first time we start talking about tapering and moving off of it. this was a big moment. and we finally have got there. and the question is where do we go from here? does this mean we've ended the financial crisis, and we're back to normalization? liz: go ahead, quickly, brian, go ahead. >> all i wanted to say real quick, phil, we've gone from 85 billion a month to 0 and the ten-year treasury yield is lower, not higher. liz: exactly. >> it is lower. so i do not believe that quantitative eas

liz: phil flynn, when are they going to learn how to hedge. the strong dollar is not hurting apple. they have just as much a multinational business as the other dow components but it also affects commodities, things like gold and oil because the stronger dollar makes those weaker? >> everything, and a lot of the multinationals because of misperception of how the currency markets were going to play out really missed the boat. and it's hurting earnings across the board. you know, even if you look at what's happening with chipotle. what's happening with mcdonald's. it hasn't been issues necessarily in the united states, it's what's going on globally as well. you look at what's happened with mcdonald's for example, not only did you have the chinese disaster, you had rising food costs and rising beef costs. i don't think underselling mcdonald's just yet. i remember when mcdonald's was starting markets to grown-ups, that was a disaster and everything fell apart. i think mcdonald's is going to come back. chipotle, it's been rocketing. how much can you go? 600, $700 a share? would you rathe

i'll tell you what, phil flynn, oil to fall below $90 and jump back up in the aftersession above 91. broaden that discussion to everybody who owns stocks and what that really should mean. >> well, it really means that the market has more faith in the u.s. economy today than they did yesterday, and i think that's a big part of the comeback today. for the last couple weeks, oil prices have been selling off because of concerns about global economic growth and how it could impact the u.s. we saw the wti spread, the european grade spread come, in because they thought the u.s. was going to be the only demand game in town. liz: whoa, whoa, let me just clarify, that you are so right, i saw that yesterday and said i'm not going to bring it up. only a $4 differential which is by the way, nothing. we've seen 11, 12, 13 bucks earlier this year. right now $3. they're closing that gap. what should that mean to people watching? >> means that the u.s. is establishing itself as an energy consuming power once again. showing our economy has taken hold. i wouldn't be surprised to see the day we get back

let's bring in phil flynn for price futures group, a fox business contributor. the big sectors that's driving this rally. talk to me about energy, phil. >> well, it is. we're back up today, $1.68 on the oil. really this is the biggest comeback, i think, in the stock market since the royals last night. it's incredible. we're back above the 200-day moving average. look at the drop, big drop cans in the vixx today, even the gold market is down very, very substantially. oil prices, of course -- which were falling out of bed for a multitude of reasons, a big build in oil supplies, declining demand -- really seemed to turn around on report that saudi arabia actually slowed oil exports last week -- last month. that slowed down the rally, but the weakness in the market that we saw the last couple days is really coming back with the strength in the stock market. so is more confidence out there, there's that lack of fear today. that is good for the oil market right now. the other thing that i think is really interesting is if you look at what's happening with the wti contr