They seem to be going down more gradually (or about the same rate) as they went up a few years ago.
why does wallstreet keep harping about how bad this is for economy? I'd think this would be great for other businesses and consumers.
There are some bad about lower gasoline price.
1) Oil and gas shale companies - can't make it (pay their debts) with oil less than $50-$60 per barrel, especially small companies with high leverage.
2) State and local government entities (in oil and gas producing states) - their budgets are blow up from less taxes (if oil prices stay this low for long period).
3) Oil and gas shale workers - see #1. No more $100K+ per year or more for blue colar workers. Then the supporting folks to support those folks will be out of jobs.
Don't forget about other oil producing countries such as Saudi, Russia, UAE, Venezuela. Talk about a huge revenue/pay cut (over 50%).
Conventional production has been in a undulating plateau since 2005, and the cause is peak oil. The IEA acknowledged this in 2010.
Because of that, U.S. shale oil was used to meet increasing demand, but it has low energy returns, which is why more wells have to be drilled each time just to maintain production. But operations became feasible because of increased credit and high oil prices.
In 2009, oil prices crashed, together with world trade. To deal with this problem, the U.S. governments and others bailed out financiers, allowing the global economy to "recover." With that, demand for various goods and eventually oil prices gained, together with stock markets, etc.
Quantitative easing ended last November, and together with warnings of another financial crisis, has now led to volatility not only in oil but also in other markets.
That would have been good to know like 6 months ago.
http://www.nasdaq.com/markets/crude-oil.aspx?timeframe=6m
Thanks for the useless recap jackass! :awe:
You totally nailed it in august right?
right?
You said it would be $45 in January? Wow what else does your crystal ball say?
It's sad that companies take such drastic measures for something temporary. Shows just how greedy they are. "Oh, we're not making as much money as usual for a few months? let's lay off a bunch of people!" They can justrehire temporary foreign workersmake everyone else work harder for the same money later if they need more workers anyway. This world is fucked up.
The other side of cheap gasoline , heads are rollling =
http://money.cnn.com/2015/01/15/new...bs/index.html?sr=fbmoney011615schlum0500story
https://ca.news.yahoo.com/canadas-r...ion-oil-prices-plunge-184352501--finance.html
http://www.bloomberg.com/news/2015-...r-oil-patch-workers-laid-off-in-downturn.html
http://money.cnn.com/2015/01/06/news/economy/oil-jobs-gas-prices/?iid=EL
Went out yesterday to fill both my cars because I saw that the normal $0.30 jump had already occurred at a few stations (most by the end of today). Filled the first one for $1.89. Filled the second for $1.94 - 0.80 (Kroger points) = $1.14. $14.75 for 12.83 gallons of gas.
No complaints from me on that one (would have been nice to get it down to $0.999 or less though! )
It's sad that companies take such drastic measures for something temporary. Shows just how greedy they are. "Oh, we're not making as much money as usual for a few months? let's lay off a bunch of people!" They can just rehire temporary foreign workers later if they need more workers anyway. This world is fucked up.
Fixed
Normal $0.30 jump? lol crude goes from $46 to $48 a barrel and gas prices jump by 15%....