Posted on 08/17/2015 1:45:02 PM PDT by blam
Bob Bryan
August 17, 2015
Oil prices have hit six-year lows, and Cumberland Advisors' David Kotok thinks the worst may be yet to come.
"We could go back to $15 or $20, this is a downward slope, we don't know a bottom," Kotok said in a Monday morning interview on Bloomberg TV.
WTI crude oil futures are trading near $42 a barrel while Brent futures are just above $48 a barrel.
Kotok said that despite the oil industries apparent belief that things will get better, there is little reason for anything to change.
"Hope is not a strategy, it’s a myth," he said. "The fact is, we don’t have the drivers."
The good news is that there's good news. When asked about the lack of an increase in consumer spending despite the more favorable oil and gas prices, he said it will come.
(snip)
(Excerpt) Read more at businessinsider.com ...
If the President were Republican, the Democrats would have a Special Prosecutor and Headlines over the price gouging. They could pretty well write their own ticket next year after nationalizing the oil industry for collusion.
Unless the GOP wants to play politics, they might want to get out of the game.
No but I wish I did. Was working down in Phoenix out at the Palo Verde Nuke plants in 1981 and got into a late night high speed race on the freeway with a 280Z, while I was bit over the legal limit...
Forgot about being almost out of gas and the speedometer was pegged when it blew. The Z car pulled up as I coasted to a stop on the shoulder. The driver asked how fast was I going and said he was doing over 130. But she went out in memorable style.
The Z got the jump on me and I was doing about 80 and so I slammed it back into 2nd gear and walked away from it. When I put some gas in to start it the next day the dipstick blew 30 feet out in to the desert and the oil/breather cap blew off so hard it dented the hood. It still ran but I was blowing smoke out of the left side so bad it was looked like I was crop dusting, I was putting in about a quart of oil on every fill up. I ended up selling it to a guy for $500.
“The labor participation rate is the highest it’s been in 40 years.”
Lowest, not highest.
“Big oil and the companies depend on high oil prices are going to suffer. Almost everyone else is going to benefit”
Until the Saudi’s sink the US oil industry, and then guess what happens; the Saudi’s cut production and raise the price. There won’t be anything we can do about it because our oil industry is gone. By the way, what happened to the conspiracy between the US oil producers to keep the price up.
Definitely falling oil prices are excellent for Main street. Of course they are.
It is not good for Wall Street because they have made trillions of dollars in loans and oil derivatives that will destabilize the banking industry that does not have the resources to cover bad derivatives and loans and the Fed may fail at papering this mess over. The chief reason is that the reality of the economy simply cannot be hidden with bs anymore.
The other glaring issue is that every single recovery in the US has been characterized by rising gas and oil prices not collapsing ones. It means that demand of everything else is way off.
See this article for reference.
Yes! I meant that the people not working was the highest which translates in a low participation rate.
Even with cheap oil, we have not seen increased economic activity that is supposed to come with more discretionary income and consumer spending.
This is certainly another sign of depressed economic conditions and deflation.
If oil goes that low, the frackers won’t have a chance and this could be the catalyst for a US market collapse and monetary destruction. And the expected Fed response will be massive money printing.
“...48 cents just in state tax on a gallon!”
Well, you know we desperately need those bike lanes, pedestrian overpasses and wildlife crossings on the mountain freeways. Oh, and don’t forget a few more new ferries for those who enjoy the island lifestyle. If we’re lucky up where I’m at, we’ll see two guys in a state pickup shoveling a little asphalt into some potholes.
Had a Duster with a heavily modified 360 in it, giant 4bbl, headers, racing cam, driveshaft loop, had to chain the engine to the frame, the works.
Barely idled at a light.
But it was enormous fun giving corvettes a head start, at lights, then blowing their doors off.
I am so screwed.
Those days won't be back.
its all a bunch of bull....prices should be way lower and yet still hanging around the $3 mark..
I broke the right motor mount and so I could never do another burn out again without the engine rolling hard to the left. I had to use a rolling start, then I could grab 2 and light it up. It didn’t take long to get the rep in High School and soon no one would race me. She didn’t look like much, black coupe with red interior, stock wheels, but only weighing about 2400 lbs with the 4 speed Top Loader and 2:71 rear end it would really fly. I would routinely get 20 mpg cruising down the freeway or back country roads.
I moved over to the Tri-Cities in eastern Washington in 78 but would drive home to Vancouver, WW on the weekends down SR 14 along the Columbia (never saw a state trooper in 7 years on that route) and never drove the Oregon freeway until my wife got pregnant in 1985 and only then because she had to go to the restroom 3 times each way. Fastest I ever made that 200 mile trip was 2hr:40minutes.
Yes, and thanks! The transducers should be concealed, of course.
Big oil and the companies depend on high oil prices are going to suffer. Almost everyone else is going to benefit.
Don’t forget the Dynacorn bodies for 67-70 mustangs as well.About 15 large for a complete body,no suspension or interior.You would be hard pressed to rebuild a body for that amount.
All next month....
And monkeys could fly out of Hillary’s butt.
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That would happen before oil got to $15.
You are not screwed if prepared. I am a trader by profession and am as prepared as I can be to make a bundle. The problem is when the money is made I have to turn it into something valuable. Cash is crap.
Business Insider. Providing info worth every penny you paid for it.
Did they mention demand for oil has not stopped growing?
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