A Barrel of Crude Oil Is Below $55.00 Again

[Jeff '79]

Originally Posted by Jeff '79

A barrel of crude closed under $51.00 today.

Prices at the pumps are a droppin'!

More disposable income for Americans means a trickle down to the service industries and the working man, who are most affected by higher fuel prices.

Yay!

Oh ya.
Any small business, right up to large corporations will see their bottom line increase as well. All but the oil sector, of course.
It's about time!
Also the NASDAQ closed in record territory.
It looks like we are entering a Goldilocks economy.
Next bump in the road?
The raising of interest rates.
How long will the Fed let it last?

[Jeff '79]

A barell of crude closed at around $49.25 yesterday! See you at $42

Gas at the pumps has dropped 10¢ this week so far.

[VITE1]

Originally Posted by Jeff '79

A barell of crude closed at around $49.25 yesterday! See you at $42

Gas at the pumps has dropped 10¢ this week so far.

It's because OPEC is dumping so it will damage the American Shale oil industry.Plus Iran is now back in the market.

And the USD has gotten stronger hurting American exporters.

[Jeff '79]

Originally Posted by VITE1

It's because OPEC is dumping so it will damage the American Shale oil industry.Plus Iran is now back in the market.

And the USD has gotten stronger hurting American exporters.

To the benefit of the little consumer, the big consumer, the small businessman, and the large corporation, and to the detriment of the Middle East and Russia?

I see no downside here except for the price of oil.

[carlton_fritz]

Be nice if the local stations dropped prices to match.

[Iron Chef]

Originally Posted by Jeff '79

To the benefit of the little consumer, the big consumer, the small businessman, and the large corporation, and to the detriment of the Middle East and Russia?

I see no downside here except for the price of oil.

Sorry...but I'm damn tired of seeing inflated prices at the pump and then reading about record profits by the big oil companies. I have zero sympathy. I've seen a $.15 per gallon drop around here and I couldn't be happier.

And yes...I know all about the "cost of gas" and "cost of exploration" and all that crap that's tied into profit...but you know what? I don't give a shit. Let's see $1.50 per gallon...I want to feel like I'm 35 again.

[VITE1]

Originally Posted by Jeff '79

To the benefit of the little consumer, the big consumer, the small businessman, and the large corporation, and to the detriment of the Middle East and Russia?

I see no downside here except for the price of oil.

When people start losing jobs and the economy tanks remember this.

Demand is going down as well as supply foing. Worldwide the major economies are slowing.

[JRD77VET]

Originally Posted by Jeff '79

To the benefit of the little consumer, the big consumer, the small businessman, and the large corporation, and to the detriment of the Middle East and Russia?

I see no downside here except for the price of oil.

The low oil prices are effecting my work. We do some work for oil rig builders and oil exploration companies.

But their slowdown is replaced by the company doing more work for other companies.

I would like to see pump prices continue to fall.

[Jeff '79]

Originally Posted by VITE1

When people start losing jobs and the economy tanks remember this.

Demand is going down as well as supply foing. Worldwide the major economies are slowing.

In my humble opinion, it is the fairest redistribution of wealth there possibly could be.

[VITE1]

Originally Posted by Jeff '79

In my humble opinion, it is the fairest redistribution of wealth there possibly could be.

Then you need a leason in economics.

[Jeff '79]

Originally Posted by VITE1

Then you need a leason in economics.

Funny, I did quite well in economics in college.
I'm not seeing your angle either.

[VITE1]

Originally Posted by Iron Chef

Sorry...but I'm damn tired of seeing inflated prices at the pump and then reading about record profits by the big oil companies. I have zero sympathy. I've seen a $.15 per gallon drop around here and I couldn't be happier.

And yes...I know all about the "cost of gas" and "cost of exploration" and all that crap that's tied into profit...but you know what? I don't give a shit. Let's see $1.50 per gallon...I want to feel like I'm 35 again.

Xom profit is less than 9%. They are the largest and most profitable publicly traded oil company.

Aramco is state owned and much more profitable. And they are dumping oil to make American business stop shale oil production so they can protect their profit margins.

[VITE1]

Originally Posted by Jeff '79

Funny, I did quite well in economics in college.
I'm not seeing your angle either.

Oil is being dumped to drive American oil companies into stopping oil production.

The OPEC countries don't want us to be energy independent. And they want our 1 TRILLION a year we send then for oil.

That's a lot of American money not going to American employees and taxes.

Add to that the global slow down in demand and this is one of many factors that can drive the world back into recession.

[Jeff '79]

Originally Posted by VITE1

Oil is being dumped to drive American oil companies into stopping oil production.

The OPEC countries don't want us to be energy independent. And they want our 1 TRILLION a year we send then for oil.

That's a lot of American money not going to American employees and taxes.

Add to that the global slow down in demand and this is one of many factors that can drive the world back into recession.

Has there ever been an economy that you know of that was on a perfect upswing forever?
The American consumer and businesses benefit from the extra purchasing/ saving power afforded by lower fuel prices.
High gas prices can be analogized to a tax on everyone that drives.
For the relatively few workers that it hurts, greater America will benefit from the increased purchasing power

[Bill]

Originally Posted by Jeff '79

Has there ever been an economy that you know of that was on a perfect upswing forever?
The American consumer and businesses benefit from the extra purchasing/ saving power afforded by lower fuel prices.
High gas prices can be analogized to a tax on everyone that drives.
For the relatively few workers that it hurts, greater America will benefit from the increased purchasing power

Other than at the gas pump, have you seen the price of ANYTHING go down? I haven't.

[Jeff '79]

Originally Posted by bill_daniels

Other than at the gas pump, have you seen the price of ANYTHING go down? I haven't.

Yes, housing prices and interest rates come to mind
The higher prices that you speak of coincided with the spike in fuel prices for the last 10 years.
The airline, food, and plastic industry, and basically every other oil dependent business, passed on the increased cost of higher raw material prices to the consumer. Once prices increase, companies are very reluctant to drop them, as pricing power is so marginal. Ya, I know that you don't need an economic lesson, but that's it in a nutshell.
I'm hoping that lower crude prices will result in a trickle down effect for the American consumer, thereby increasing their buying power. It has started at the pumps already but will take a lot longer to reach other businesses, and it may never, as you imply.
VITE 1 - Is my take wrong? I'm not getting your point. Please splain so that I can comprehend your POV, as it's important.

And a barrel of crude sits at $48.50 right now.

[VITE1]

Originally Posted by Jeff '79

Has there ever been an economy that you know of that was on a perfect upswing forever?
The American consumer and businesses benefit from the extra purchasing/ saving power afforded by lower fuel prices.
High gas prices can be analogized to a tax on everyone that drives.
For the relatively few workers that it hurts, greater America will benefit from the increased purchasing power

Wi th all th ing being equal you would be xorrect. In this case we have several governments around the world dumping oil to specificly damage a major section of the American exonomy.

On top of that many of the other world's economies are slowing and it will drag us down at some.point in the near future.

[carlton_fritz]

Sunoco regular $2.45, Premium...$3.10. Greedy thieves.

[Bill]

Originally Posted by Jeff '79

Yes, housing prices and interest rates come to mind
The higher prices that you speak of coincided with the spike in fuel prices for the last 10 years.
The airline, food, and plastic industry, and basically every other oil dependent business, passed on the increased cost of higher raw material prices to the consumer. Once prices increase, companies are very reluctant to drop them, as pricing power is so marginal. Ya, I know that you don't need an economic lesson, but that's it in a nutshell.
I'm hoping that lower crude prices will result in a trickle down effect for the American consumer, thereby increasing their buying power. It has started at the pumps already but will take a lot longer to reach other businesses, and it may never, as you imply.
VITE 1 - Is my take wrong? I'm not getting your point. Please splain so that I can comprehend your POV, as it's important.

And a barrel of crude sits at $48.50 right now.

Interest rates are low, and will remain low, because the largest borrower in the US, the US government, can barely make the interest payments on the national debt with interest rates around zero. If the Fed allowed interest rates to rise to say, 10%......well, Uncle Sam would officially have to throw in the towel, quantitative easing (printing money) or not.

[VITE1]

Originally Posted by Jeff '79

Yes, housing prices and interest rates come to mind
The higher prices that you speak of coincided with the spike in fuel prices for the last 10 years.
The airline, food, and plastic industry, and basically every other oil dependent business, passed on the increased cost of higher raw material prices to the consumer. Once prices increase, companies are very reluctant to drop them, as pricing power is so marginal. Ya, I know that you don't need an economic lesson, but that's it in a nutshell.
I'm hoping that lower crude prices will result in a trickle down effect for the American consumer, thereby increasing their buying power. It has started at the pumps already but will take a lot longer to reach other businesses, and it may never, as you imply.
VITE 1 - Is my take wrong? I'm not getting your point. Please splain so that I can comprehend your POV, as it's important.

And a barrel of crude sits at $48.50 right now.

You are looking at ONLY American issues. Globally many other issues are in play and most of th em are not good for long term American economic growth.


And get your facts straight. Airline industry average margin is 1%

Airlines Have A Small Profit Margin - Business Insider

The rest of the money goes to fuel (29%), salaries (20%), ownership costs (16%), government fees and taxes (14%), maintenance (11%) and other (9%).

Read more: Airlines Have A Small Profit Margin - Business Insider