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Re: Falling Oil Price ≠ TEOTWAWKI

Unread postPosted: Mon 04 May 2015, 09:55:01
by Tanada
Pops wrote:Obviously it's table stakes, the price can only rise as high as ability to pay allows for a given demand. I think it could go back up the limit, which is brent $120/unleaded +/-US$4 by time to go to Grandmas house for christmas.

It is all about what the various players in the market see in their crystal balls in the medium term. The floor and ceiling are set by costs at the bottom: somewhere around $75 and the ceiling, ability to pay, somewhere around $100. But in the short run it is about how the consumer reacts when they grab the nozzle.


Something that occurred to me while reading this post. How are consumers reacting to the lower fuel price in terms of their personal and/or family budgets? If you take your fuel price savings and spend it on other things you boost the economy in the eyes of the economists. If on the other hand you pay down some of your debt to give yourself breathing room most economists don't pay much attention because you are not providing a prompt stimulus by additional consuming. On the gripping hand if you pay down some debt in the January-July period because of the lower fuel price then you can tolerate higher prices for longer on the next upswing. A lot of us myself included buy our fuel with credit cards pay at the pump because that is the most convenient way of buying fuel. If we pay down some debt while prices are lower then when prices go back up we will have the credit available to keep buying fuel for a while without cutting other spending to do so.

Re: Falling Oil Price ≠ TEOTWAWKI

Unread postPosted: Mon 04 May 2015, 10:00:44
by Pops
Image

Re: Falling Oil Price ≠ TEOTWAWKI

Unread postPosted: Sun 07 Jun 2015, 06:11:17
by onlooker
http://www.economic-undertow.com/
This article is illustrative of the bubble - bust/ponzi scheme dynamics inherent in the oil industry. It accurately foretells of more and more debt burden and consequent fleeing of investment capital. Add the background continuing deterioration in consumer financial standing and the general economy and you have the signs of a type of stagflation. Deflation with with soaring prices for some commodities. All this foreseen by those studying the economics of peak oil.

Re: Falling Oil Price ≠ TEOTWAWKI

Unread postPosted: Sun 07 Jun 2015, 09:14:40
by Pops
Sorry, but I think that blog post is illustrative of a particular mindset, a self-amplifying doom-loop if you will. LOL
This looks like the money quote
The question is: what can be said about the petroleum extraction-to-waste enterprise? Is it completely worthless? The markets are speaking, it’s best to listen to them; under their breath they are murmuring ‘worthless’, ‘worthless, worthless’.


I'm not sure what is going on elsewhere in the world, but in the US it kind looks like the "enterprise" has legs:

Image

And those aren't all ev miles:

"Performance vehicle sales around the world continue to grow -- with sales up 70 percent in the United States and 14 percent in Europe since 2009," Pericak said.

Demand for some vehicles is so white hot that automakers can't keep up: Dodge recently announced it was suspending new orders for its 707-hp Challenger and Charger Hellcat models until it could validate orders and fulfill its backlog. And at the New York auto show, traditionally a bastion of luxury car reveals, automakers touted performance models in virtually every segment, from the affordable Ford Focus RS to the new McLaren 570S supercar.

http://www.autonews.com/article/2015053 ... e-vehicles

Re: Falling Oil Price ≠ TEOTWAWKI

Unread postPosted: Mon 08 Jun 2015, 00:37:33
by dolanbaker
I don't think that the increase in sales of top range cars is affected by the price of fuel at all. If you're looking to buy a car that expensive, then you're not going to be counting the pennies when it comes to fuelling up!

Re: Falling Oil Price ≠ TEOTWAWKI

Unread postPosted: Thu 11 Jun 2015, 09:16:44
by Revi
You do what your culture tells you to do. Now that the price of oil is down it's time to consume a lot more gas!

Oil slips to biggest weekly loss in 2 years amid market turm

Unread postPosted: Sat 10 Feb 2018, 21:04:30
by AdamB
Oil prices slid more than 3 percent on Friday as US futures fell below $60 a barrel for the first time since December on renewed concerns about rising crude supplies. Oil prices slid more than 3 percent on Friday as US futures fell below $60 a barrel for the first time since December on renewed concerns about rising crude supplies. US and Brent crude futures have slid more than 11 percent from this year’s peak in late January. Brent fell nearly 9 percent for the week while U.S. crude dropped 10 percent, the steepest weekly declines since January 2016. Futures posted a sixth straight day of losses, wiping away the year’s gains in a string of high-volume trading sessions, pressured by stronger-than-expected supply figures and a surprising ramp-up of the North Sea Forties Pipeline, which shut earlier in the week. Turmoil on


Oil slips to biggest weekly loss in 2 years amid market turmoil

A Global Perspective On The Outlook For Oil Prices

Unread postPosted: Fri 02 Mar 2018, 09:32:37
by AdamB

Summary IEA, EIA projections point to significant supply growth in 2018. However, global upstream investment remains depressed as the market relies almost exclusively on anticipated growth in US output to meet growing global demand. Offshore oil production accounts for 30% of total global oil production and as such remains a key component of the global oil market. Investment spending in the offshore sector remains well below prior peak levels from 2013/14. If US production growth slows or tops out (a possible scenario by 2020), a severe global supply deficit in the oil market may develop from 2020 onwards. In this article we will take a closer look at the latest data and forecasts published by the International Energy Agency (IEA), as well as the Annual Energy Outlook (AEO) published by the Energy Information Administration (EIA). The IEA data will give us a clearer picture of the


A Global Perspective On The Outlook For Oil Prices