Posted on 12/12/2014 8:38:48 AM PST by Signalman
A global glut of oil will persist next year, putting further pressure on prices and raising the risk of unrest in some producing countries. That's the stark warning from the Paris-based International Energy Agency, which on Friday cut its forecast for global demand growth in 2015. It now sees demand growing by less than 1% next year.
Oil prices have already fallen by more than 40% in six months, but there's little sign of that stimulating demand yet, or constraining production enough to remove excess supply. "Oil price drops are sometimes described as a 'tax cut' and a boon for the economy, but this time round their stimulus effect may be modest," said the agency, which monitors energy market trends for 29 of the world's wealthiest nations. U.S. crude prices fell again on Friday to around $59 a barrel.
(Excerpt) Read more at money.cnn.com ...
But government is already trying to tax up the difference, and when prices rise again, the tax will stay.
And the $1.25 minimum wage?
At least these are state legislators you’re talking about (I haven’t seen any federal gas tax legislation).
Those b@stards can be influenced by some local pressure, at least in most red states.
I thought America was in new Industrial renesance.
This drop in oil prices SHOULD DROP grocery prices, and ALL consumer
goods being transported by trucks!! This SHOULD help create jobs!!!
What is "bidding the market down"? Shorting stocks or futures puts upward pressure on the price of the instrument. Lack of bids at the offer price causes a lower price adjustment.
Abrupt pricing changes are never good for an economy. The stress created in various sectors (especially international trade and Fx markets) overwhelms the benefits.
“Shorting stocks or futures puts upward pressure on the price of the instrument” (when they cover).
You said production. That is upstream, not the downstream side.
So where are the new jobs and lower prices? Gasoline has down for a while.
Bidding the market down is a euphemism. When there is a glut on the market the lack of activity causes the price to drop.
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