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Why would they suck bricks?
Oil drops 7 percent to 3-1/2-year low below $50
Looks like it actually got back down to less than $50. The Russians and Iranians have to be s***ing bricks.
Why would they suck bricks?
RG, it wont stay there. It will go back up. Demand is down, but it will increase with
the decrease in price.
It got so high because of speculation. Now the prediction is decreased demand because the economy is in the tank. I don't see what would get it much higher anytime soon.
mmm not quite.
It will go up if OPEC cuts supply, or if the economy suddenly picks up and starts demanding more oil.
If the economy continues to slide, expect prices to do the same.
Remember, the price is simply the intersection between the underlying supply and demand.
Economy is in the tank. Okay. Have you been to the malls lately? Cant
move. Have you lost your job or are you in danger of losing you job?
Some of the big money people are in trouble. But there is still plenty
of liquidity from all I can see. Dealers keeping advertising they have plenty
of credit to come on down. My bank is in good shape and my accounts
are sound.
My financial situation hasn't changed. I still pay my bills on time.
I think sometimes people just loved to make themselves miserable.
I got around really easily yesterday. And being at the mall does not mean people are consuming in the same manner as a year ago.
I have pretty good job security, but the people we do jobs for are feeling the downturn, definitely. That could affect our work load and my income.Have you lost your job or are you in danger of losing you job?
You think big money people have no effect on small money people? Ever?Some of the big money people are in trouble.Are you coming on down?But there is still plenty
of liquidity from all I can see. Dealers keeping advertising they have plenty
of credit to come on down.
How do you know?My bank is in good shapeIf they aren't over the FDIC limits, that's true of every account in the US.and my accounts
are sound.
Congratulations.My financial situation hasn't changed. I still pay my bills on time.
I think people who have lost a big chunk of the money they were counting on for retirement probably have a decent reason for concern -- but maybe they should just go to the mall.I think sometimes people just loved to make themselves miserable.
I think people who have lost a big chunk of the money they were counting on for retirement probably have a decent reason for concern -- but maybe they should just go to the mall.it's so sad when free-marketers have to face their own demons....denial isn't just a river in the country of Africa after all....
You know, I thought that Lindsey Williams guy was crazy when he said that oil would shoot down to $50 a barrel relatively soon about 4 months ago, but he was dead on.
Chump knows its...........................
When it went to $4.35 here, I didn't think it would ever go below $3 a gallon,
it's now as low as $1.56 and averaging less than $1.70.
http://www.toledogasprices.com/Perrysburg/index.aspx
$50 oil is bringing the recession to Houston, which had been pretty buoyant. Lyondell is laying off about 3000 people. ExxonMobil and S are postponing or cancelling several projects.
The ulative bubble created by easy credit and real estate speculation probably accounted for 5 to 7% of GDP, and that's going to disappear now. A 5 to 7% contraction would be easily the worst since the Great Depression. We're probably looking at 10-11% unemployment in a year.
I would agree. My gut said a recession was becoming more and more likely, and that it would be bad. It will be worse than a lot of analysts predict, and they are forecasting about 8-9% unemployment.
This doesn't look good for the ineptocracies running Libya, Iran, Russia, Venezuala that have based a lot of populist give-aways on oil revenue.
November 24, 2008, 8:39 am
States Flirting With Higher Gas Taxes
By Kate Galbraith
Cash-strapped states may be looking to increased gas taxes to make up for budget shortfalls. (Photo: Associated Press) For politicians, two of the most dreaded words in the English language are “gas tax,” and it was only a few months ago that a few politicians (including some presidential candidates), were proposing gas-tax holidays for the summer driving season.
As it stands, the current federal gas tax is at 18.4 cents a gallon — and it has not budged for essentially 15 years.
Every state except Alaska slaps its own tax on gasoline, and these, too, rarely get raised. The average state tax is 30 cents and the high is California with 48.7 cents. (See the American Petroleum Ins ute’s state-by-state breakdown for more.)
The idea of raising taxes on gas — substantially — has long found support among economists, including Greg Mankiw, a professor of economics at Harvard University, and Steven Levitt, co-author of the bestselling book “Freakonomics” and a Times blog by the same name.
Wrote Mr. Levitt last year:
For a long time I have felt the price of gasoline in the United States was way too low. Pretty much all economists believe this. Greg Mankiw blogged back in October about the many reasons why we should raise gas taxes.
The reason we need high gas taxes is that there are all sorts of costs associated with my driving that I don’t pay — someone else pays them. This is what economists call a “negative externality.” Because I don’t pay the full costs of my driving, I drive too much. Ideally, the government could correct this problem through a gas tax that aligns my own private incentive to drive with the social costs of driving.
Hard times appear to be nudging at least some politicians in cash-strapped states to embrace the idea.
In Massachusetts, the speaker of the house wants to raise the gas tax to help pay for the Big Dig; the governor, Deval Patrick, wants to raise tolls instead.
In Vermont, where the gas tax has not risen since 1997, the state treasurer wants a 5-cent increase to pay for infrastructure repairs — though the state’s governor is opposed. Meanwhile, it is the governor of Oregon who is pushing for a 2 cent per gallon tax hike.
Flirting with innovation, Michigan, a construction group has even called for a gas tax that fluctuates as gas prices go up and down.
For those readers in states considering similar proposals, the National Conference of State Legislatures also provides a useful breakdown of where our payments at the pump end up.
There is a drop in demand, but not 2/3 drop, from $150 to $50.
This is obvious, irrefutable proof that commodity speculators, like US hedge/priviate equity funds, using probably $10s of Bs of dubya's estate/wealthy tax cuts were pushing up the oil price, chasing more returns, 25%?, than they could get investing in the boring old Real Economy where capital returns 7-8%.
Same story with commodity agricultural products.
As the Saudis said several months ago, they had oil they couldn't sell, even before they added 500K barrels/day, so supply was sufficient, even if just a couple % over demand.
No, Supply and Demand values do not follow in a linear fashion. That's why even if ANWR only increases or oil bvy 5%, it has a dramatic effect of price.
Speculators have very little effect on prices. They contract early for a price, but still have to sell at no more than what the market will bear.
You lib s just don't get it.
How dramatic?That's why even if ANWR only increases or oil bvy 5%, it has a dramatic effect of price.
If you increase "our oil by 5%" that does next to NOTHING to the price we pay at the pump, nor does it do anything near substantial to the price that refiners in the US pay for oil.
Do I need to explain the global market for oil yet again?
http://news.yahoo.com/s/ap/20081205/..._ge/oil_prices
Oil just closed at $40 per barrel.
I would have thought this to be on the lower end of the scale if you had asked me a year ago, but I think it will head lower.
, I am not even going to bother guessing about how low it will ultimately end up.
Of course, if hyperinflation sets in, then God knows where it will be in a year in the other extreme. . I do not say that lightly. ity .
scott? Extra Stout?
Speculators got no cash in their pockets...the risky credit cash has dried up and now oil demand is taking a hit because of the global financial meltdown....double wammy...Of course, if hyperinflation sets in, then God knows where it will be in a year in the other extreme. . I do not say that lightly. ity .
God damn this is why you're always wrong. ALWAYS.
Still holding out hope that scott the oil economist will weigh in...
Damn, I remember all the times you es bumped this thread at 60, 70, 80, 90, 100, 110, 120, 130, 140, etc.
Hasn't the Pirate corollary changed?
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