Low gas prices...bad?

[LIPTON BASH]

Oil has been the leading cause of the stock crash with China. When it got to $100 a barrel we started fracking and we are now a major oil power. Factor that with Irans production coming on board and you have a TON of oil. But inventors instead want to play the waning demand card? You can't have it both ways, no supply and $100 oil and too much supply and $30 oil.

 

It's a lot more complicated than you are describing. But even if it wasn't you basically just described how the supply/demand curves work. The problem is price is dropping do to large supply and demand not keeping up but expenses aren't shrinking so therefore leads to smaller profit margins and a whole host of problems.

[DragonFire]

Live long enough, and it seems that you'll be told everything is bad for you.

 

Why is the economy bad? High gas prices!

Why is the economy bad? Low gas prices!

[John Anthony]

It's a lot more complicated than you are describing. But even if it wasn't you basically just described how the supply/demand curves work. The problem is price is dropping do to large supply and demand not keeping up but expenses aren't shrinking so therefore leads to smaller profit margins and a whole host of problems.

 

I understand what you're saying, energy companies are losing big. I just didn't think that would crash the market.

[LIPTON BASH]

I understand what you're saying, energy companies are losing big. I just didn't think that would crash the market.

 

It's happened in a 6 month span where China market manipulation has come home to roost and impacting global make performance.

[Clyde]

NYT has an article today on this.

 

 

http://mobile.nytimes.com/2016/01/22/business/energy-environment/this-time-cheaper-oil-does-little-for-the-us-economy.html?referer=https://t.co/XPq53Kx97V

[Mustang]

I remember when gas went to $1 a gallon and everyone stopped traveling. It's disheartening that our government now has us thinking that $1.65 a gallon is cheap.

 

My question is this - With oil prices low, why have air fares nearly doubled in the last 12 months? A year ago Delta round-trip to Lauderdale $260, this week $463.

[Content1]

This average Joe is enjoying the lower gas prices and yes the difference is and will be going to spending $$$ on items and services I wouldn't be spending it on if gas was at $3.75.

 

It adds up in our 3 car family...

[rockmom]

Live long enough, and it seems that you'll be told everything is bad for you.

 

Why is the economy bad? High gas prices!

Why is the economy bad? Low gas prices!

 

I was just think the same thing as I read this. :lol2:

[tdyballgame]

I wonder if all these construction supply companies will delete that fuel charge from their books. Every time I go into a local HVAC sheet metal company, there is a fuel charge on my invoice. And I'm picking up the material. And all the fuel charges for delivering wood or other products to my job sites. Yeah, probably not.

[John Anthony]

The problem is the oil/energy companies saw $100 a barrel and wanted a big piece of the action. They hired tons of workers and equipment to go after that golden ticket.

 

I guess nobody thought "what happens if we produce too much." The answer is, you go under.

 

I suppose we need to set oil at $50 and ignore supply and demand because like Dragon said, were screwed either way.

[Bluegrasscard]

I heard on some financial news yesterday that there are literally tankers now all over the oceans who can not off-load their oil cargo due to the facilities all being full. The world is currently awash, and adrift, in oil right now it seems.

 

I also read somewhere where the namesake barrell has more value than the oil it carries. Demand for barrells to store it driving up barrell costs?

 

I love sub-$2 gas as much as anyone. But going below $30 a barrell is indication of a global slowdown on a scale not seen in our lifetime.

 

And the impact to taxes that support our roads is very bad. Gas taxes pay for the infrastructure upkeep. The practical impact of the loss of funding for something we all need needs attention in Frankfort and the traditional tax attitudes need to be put aside. If there is a definition of tax that does what it should do, and needs minimum funding, its the gasoline tax that funds our road infrastructure upkeep.

[bugatti]

I remember when gas went to $1 a gallon and everyone stopped traveling. It's disheartening that our government now has us thinking that $1.65 a gallon is cheap.

 

My question is this - With oil prices low, why have air fares nearly doubled in the last 12 months? A year ago Delta round-trip to Lauderdale $260, this week $463.

Look at where we compare to most countries with gas prices. We are on the low end. Always have been.

 

No clue on airlines. I listened to an airport CEO recently speak and he said airlines are making a lot of money these days.

[Fear the Nation]

It's good for me. About time the little guy gets a break.

[Jim Schue]

I'm not going to lie: The schadenfreude part of me wants to see all of those oil executives get this comeuppance. Greed needs to be punished.

[SportsGuy41017]

I am enjoying this just like most people, as prices have been too high for many years now.

 

The Dakota fields and Russia has helped a lot. But what is also at play is Saudia Arabia, they are banking on running the Dakota fields and Russians out by flooding the market as well as lowering their prices.