Posted on 01/20/2016 4:26:34 AM PST by John W
U.S. stock index futures pointed to a sharply lower open, with Dow futures sinking in excess of 300 points as European and Asian shares tumbled in the wake of renewed oil price weakness.
European stocks fell sharply shortly after market open, with the pan-European STOXX 600 down in the region of 3 percent after a weak session in Asia and fresh lows in oil.
(Excerpt) Read more at finance.yahoo.com ...
OMG! GAS SPOTTED AT JUST 46 CENTS PER GALLON!
https://www.youtube.com/watch?v=3SQe0Pvq3W4
Here we go,worldwide market correction.How low before we hit a bottom?
I know there are many folks who work in the oil industry, but I wish someone could explain how lower oil prices are so terrible for the rest of the economy. It’s my understanding that our modern economy is very energy dependent. Cheap oil would be bad for the oil companies of course, but what about everyone else who are consumers of oil and all of the products made from it? Certainly far, far more people are oil consumers than oil producers.
Janet Yellen must be fired raising interest rates by.25 BPS in 7 Years.
She was convinced Obama lied we had full employment
Blame China not the US.
Yes, I thought $4 a gallon gas was a part of the 2008 troubles. Now potential $1 a gallon gas is part of the 2016 troubles.
Some of us didn’t know what we were talking about. We were just spreading negativity.
I am so screwed.
This is all orchestrated. The Saudis are sitting on a lake of oil and are the puppetmasters when it comes to releasing that oil for consumption. When America started booming with oil from shale deposits, the Saudis were not going to sit idly by as America became energy independent, so they opened the spigots so that worldwide money went to them instead of us. That put American workers out of business, because the Saudis pulled it out of the ground cheaper and had more of it.
Obama vetoed Keystone, because he knew that it would increase our ability to fend for ourselves on the world stage. That also gives the Saudis additional greenbacks. Couple that with the push for “green” in America with everything from automobiles to yo-yos, and petroleum is less in demand, thus leaving scads of it on the world market just waiting to be consumed.
This is all a ruse. The fix is in. Most Americans are too stupid to understand what’s happening, but give it time, and we’ll all be wondering what happened. Gas will be cheap, but food will be hard to find.
2. The low oil prices themselves are the real problem. In this case, the cause of the low prices could be alarming. If the price drop is driven by a steep decline in global demand, then that itself is an indicator of an overall economic decline that goes far beyond just the energy sector.
Well, for one thing, banks are very exposed in the domestic oil patch which is being destroyed by low oil prices and, now, the sudden introduction of oil from Iran. At the same time, lower oil prices are seen as a global indication of arrested growth in general and that undermines the market.
I the mean time, beef prices are up because corn prices are up because we were lied to about oil resources and idiots redirected food into fuel. The entire “peak oil” pushed by Liberals in order to manipulate our behavior and restrict the free market was a lie.
Sorry — need a correction there. The low oil prices themselves are NOT the problem.
I think the problem arises from massive amounts of loans made to oil companies and affiliated vendors all down the line that were predicated on the belief that oil would stay safely above a minimum level needed to service those loans. Now oil is well below that minimum required level which means 100’s of billions of dollars in loans are about to default.
That, in turn, could take out the loaning banks, leading to a cascade type failure of the entire global financing scheme (being polite in choice of words, think of the adjective Ponzi).
Anyway, I think that is the problem, or at least the perceived problem with cratering oil prices.
Demand for fuel will increase with decrease in price.
The “introduction of oil from Iran” is overblown as a factor here. The U.S. embargo against Iran altered the way oil was traded on the global markets, but it didn’t stop Iran from selling oil. I believe they were the fourth-largest oil producer in the world even with the embargo in place.
Exactly. Cheap oil and natural gas is beneficial to every family at the pump, in our energy bills and to every business not connected to the oil business. Food prices should come down. The cost of everything shipped should come down. Amazon will be having a field day soon.
No, it's the chicken little press trying to dodge from the issues that their candidate is bombing and so is their president.
It isn't going to end easily. Globalism is a race to the bottom, for labor and goods. And you know what? The elite aren't going to cede their wealth and power. They'd rather let civilization for the rest of us descend into chaos.
Maybe we should bomb their oilfields
Petroleum is used for far more than just vehicles. Cheaper petroleum should benefit many, many industries. Industries that should be cheering cheap oil: automotive, aviation, trucking, plastics, detergents, heating oil, synthetic rubber (tires), synthetic fibers (clothing), fertilizers, food additives, cosmetics, medicine, etc. Yes. Some Americans will lose jobs over this, but cheap energy should literally fuel a stronger economy.
Maybe here, but not all over the world. Oil is traded in U.S. dollars, so countries like China and Canada that are out there working to reduce their exchange rates in an attempt to protect their domestic economies may not actually see the lower prices. When the Canadian dollar was strong a few years ago, the price of gasoline in the two countries was very similar. Now that the Canadian dollar is weak, their gasoline prices are still high while U.S. prices are dropping steeply.
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