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Liberty News ForumLNF Forums HereEconomics, Financial News › - oil drops below 50 dollars
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Hot Topic (More than 10 Replies) - oil drops below 50 dollars (Read 3,979 times)
PeterR
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Re: - oil drops below 50 dollars
Reply #10 - Jan 6th, 2015 at 10:24pm
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The gas available at the pump today was refined from oil that cost more than $50 a barrel.


Yet if there is upheaval in some Middle Eastern oil-producing country on Monday night, the price of gas at the pump will go up on Tuesday morning.

  

Says the guy who "lost his shit after January 20, 2009."
(Or, am I the “guy who shit his pants on 9/11 and spent the entire GWOT behind the safety of his monitor”?  I can never remember.)

"He was born with the gift of laughter and the sense that the world was mad."
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wyattstorch2004
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Re: - oil drops below 50 dollars
Reply #11 - Jan 7th, 2015 at 10:09pm
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PeterR wrote on Jan 6th, 2015 at 10:24pm:
Yet if there is upheaval in some Middle Eastern oil-producing country on Monday night, the price of gas at the pump will go up on Tuesday morning.



The better explanation is not that the oil currently used was purchased at a higher price, but that gas prices have to factor in not only current input prices, but also have to hedge against sudden increases in future input prices.  Future supply and demand for oil -- and thus price -- is as important as, if not more important than, current prices.  So what gas prices are probably telling us is that the producers do not expect the price of oil to stay as low as it is.  Whether they are right or wrong is something we will have to wait and find out.
  
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glen65
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Re: - oil drops below 50 dollars
Reply #12 - Jan 7th, 2015 at 10:43pm
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Redbeard wrote on Jan 5th, 2015 at 3:37pm:
I remember gas was 87 cent a gallon  in 2002 a barrel of oil was 27 dollars At 50 dollars a barrel shouldn't it be much cheaper at the pump? Undecided Undecided


You might be talking about a temporary downward spike in your area. I don't remember seeing it less than a dollar here.
Never the less, I don't think the current prices are going to last too much longer, would love to be wrong.
  
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ranger4life
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Re: - oil drops below 50 dollars
Reply #13 - Jan 8th, 2015 at 6:58am
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Archie wrote on Jan 5th, 2015 at 10:19pm:
I don’t doubt that the government or even the states may see an opening to raise federal or state gasoline tax.
If we become energy independent, and have a surplus to sell, I would hope gas would cost about $1.50 at the most in this country. That is if the tax and spend politicians don’t whack us for more tax.
This lower cost has something to do with OPEC and the Arabs wanting to hurt the oil companies. I am sure some of you all heard about it. Enjoy it while we can.
Smiley




I don't think OPEC is the driving force behind this one. Rember a president ago when the left was screaming to the heavens about big oil getting HUGE tax breaks and pocketing them? They have actually sunk a good portion of that into R&D and job creation. Look at the job booms in North Dakota and Wyoming to name a couple places. New and improved exploration and development is having a huge affect. New drilling fracking and refining methods are also playing a part. I just started reading up on all this stuff and although it's quite boring it has some great information.


http://www.ogj.com/index.html
  

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Enoch8
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Re: - oil drops below 50 dollars
Reply #14 - Jan 29th, 2015 at 1:40pm
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I might have mispaced this thread:

There is a very long article from Global Research the Mike Whitney wrote, which I found quite interesting.

From the following thread:

http://www.libertynewsforum.com/cgi-bin/politics/YaBB.pl?num=1422471391

Quote from that thread:

Are lower oil prices bad for the petrodollar or global economy?

Yesterday at 1:56pm

Over the past few weeks, I have heard many people whining about the lower oil prices, being a potential problem for American oil companies, that the lower prices makes it unprofitable to bring shale oil to the market.
Now we are hearing that, this will lead to potential job loss and even a liquidation of petrodollars from global markets.

This seems counter-intuitive to logic... If oil supply is increased, but demand is constant or even increasing, but prices are low aginst the dollar, then doen't it make sense, that the US Dollar value is increased against oil and especially against forex currencies?
Especially considering, that devaluation of local currencies, is a trade advantage, to exporter nations, I would think that demand for USD would be increased, while petrodollar values are high against competing oil markets.

This could be a lengthy and deep topic, to be sure, so I am only going to scratch the surface, for now, by asking if you saw this article, written by Mike Whitney and posted at Global Research.
It is over a week old now, but is well worth reading.

I think Mike Whitney knocks this one out of the park.

http://www.globalresearch.ca/are-plunging-petrodollar-revenues-behind-the-feds-p....

I suspect, that the futures traders are the ones most likely to be complaining about lower oil prices.

In the free markets, competition is the natural balance and healer of ailing economies. ~My humble opinion

If I am wrong..... I can accept that.... but IMO, i would say to American producers, "If you cannot compete, then you do not need to be in business."

That said, I still believe, American workers and ingenuity will prevail. We do not need to handicap production.
Business and real economics is like professional golf. There is no handicap. It is a scratch game, in the real world.
     
  

Rule62: Don't take yourself too seriously.
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