The Price Of Oil Exposes The True State Of The Economy

TMO ^ | 11-27-2014 | Raul_I_Meijer

[TheMole]

There's some truth in what this guy says, but he's overdoing it. Some other factors at play are: 1. there's a lot of oil on the market (very newsworthy in itself, indicating that fracking is real and Peak Oil isn't) 2. natural gas has replaced oil for a lot of things, like home heating oil 3. vehicles are more efficient, causing many metropolitan areas to consume less gasoline than 20 years ago despite having more cars on the road.

Oil prices are one-third lower than just a couple of months ago. There is going to be some improvement in the economy and you'll see it pretty quickly.

[mythenjoseph]

The simple fat that the writer claims that U.S. fracking is losing money at $100.00 dollars a barrel is where it proved to me what tripe and mis-information the “oracle” was putting out...round abouts 70$ or so seems to be the general break even point for what I can derive.

[mosesdapoet]

When they throw this price of gas stuff at US this never gets discussed.
It’s not the dollar ammount value that should be of concern but the purchasing power value of the dollar. When gas was well below $1.00 a gallon what was the barrel head cost ? What could we buy for a buck then, that costs 10X more today.

The question that should be asked is why ?

While much of todays barrel head quotes include the additional cost of drilling for and processing shale oil.The symptoms get discussed but not the disease .