Posted on 08/21/2011 5:55:34 PM PDT by SeekAndFind
News reports continue to show the progressive demise of the Qaddafi regime in Libya.
Rebel forces have apparently taken more of the country’s oil refining (Zawiya) and processing infrastructure (Brega). Most observers give the Qaddafi regime limited time before a full regime change takes place in Libya. Watch what happens to oil prices if and when the Qaddafis lose and leave.
In short order, Libyan oil production will ramp up. As it does, oil prices in world markets will fall and oil futures markets will reflect the expected increase in production of oil from Libya. The key prices to watch are those trading in Europe, like Brent. US oil prices (WTI) are no longer the leading indicator of world prices intersecting with world supply/demand. Excess inventory at Cushing, OK is complicating the pricing structure. We expect oil prices to fall when highly desirable, sweet Libyan crude production is fully resumed and enters the pipeline. Maybe, they are going to fall by a lot. This will come as a much-needed boost to the US economy and to others in the world.
Remember: the oil price acts like a sales tax on consumption. To clarify this relationship we convert crude oil prices to gasoline prices and then estimate what a change in gas price will mean for the American consumer. Roughly, a penny drop in the gas price per gallon gives Americans 1.4 billion more dollars a year to spend on other than gasoline. That is a huge stimulant to the economy. The ratio is different in Europe because the gas taxes are so much higher there. Nevertheless, it is still significant.
(Excerpt) Read more at businessinsider.com ...
Good points. Didn’t the US have a deal to leave him alone and that is why he backed off with the terrorist stuff? I was of the impression Bush left him alone because we had a deal. So....Obama breaks the deal and now we will be worse off? Egypt is going after Israel? Is Obama geting his way with our destruction?
Hey! you stole my line ... an hour before I got here.
But you did leave out the rainbows and fluffy bunny rabbits for every child.
The huge trade inbalance has been around for years (as long as I remember) so I don’t buy that as a key factor.
But I agree that government sucking capital and then forcing businesses to play in an uneven field by regulating it has finally tipped the balance. But since most major companies are global they have other sources of income which can make them look attractive to their share holders.
The economy is big and multifaceted, and given people make fortunes off the economy going up and down - I think we are bouncing along the bottom.
We’ll be fine after we get rid of Obama and put the adults back in charge.
My point was that the pigeons are finally coming home to roost. You can't forever degrade your own production and not expect it eventually to catch up with you.
It is now catching up with us.
Find me a heavy duty made in America weed-eater.
http://tickerforum.org/cgi-ticker/akcs-www?getimagenr=100792
Well all we do is grin and bear it
TMB now emboldened, onward to Demascus. http://en.wikipedia.org/wiki/Damascus
I don’t have top secret anymore. There was an incident with fireworks & utility workers that didn’t go in my favor.
Thanks SeekAndFind.
And, yeah, right.
The next war against Israel appears to be about to begin. The only upside for Israel is that the Syrian frontier will probably remain quiet. And if not, a missile barrage to behead the Asad regime will bring on a massive mess and military collapse.
Kindly put, it’s wishful thinking.
Less kindly, it’s delusional fantasy.
Yikes!
Exactly. Now it is a question of who runs the damn flag up the pole. I of course, am not allowed.
That’s about it. I guess I’ll be happy if I just get a bag of Skittles out of this recovery.
Really? Click here.
Is it the S&P at 2.5 or the Nasdaq at 10. My gold at 330 kicks all of that ass.
You were supposed to be scooping up gold at 500. I know you were here.
I wasn’t paying any attention to gold until it was about $900. I didn’t have $500 anyway.
You are full of crap.
You are a manipulator!
I wish this was true. If it were I would retire by 1200 tomorrow. I think I have detected a case of cranial rectal inversion that is complicated by mega colon distenstition due to inability to void.
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