I'm no business major and won't claim to be, but here's a thought I've been pondering for a while now. I check crude oil prices on bloomberg.com just about every day because it relates to gas prices. On days that the price of crude rises, the explanation for it is usually based on optimism that the recession is ending. If higher crude prices=higher gas prices (generally), won't that put even more strain on the economy, which would make the recession worse yet? Somebody explain to me the economics behind this.
Isn't this a little contradictory?
- Thread starter summitpeaking
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knee deep in it
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in complete isolation, higher oil prices would not be good for the economy but oil is one of many small influences on the economy. If oil goes up a few percent, the impact is almost negligable on the overall economy.
It acts more like a brake than it does a govenor. It will slow a recovering economy a little bit but it won't have a huge impact even if it gets to $150. Even then, the rest of the economy must be very strong to cause $150 oil.
It acts more like a brake than it does a govenor. It will slow a recovering economy a little bit but it won't have a huge impact even if it gets to $150. Even then, the rest of the economy must be very strong to cause $150 oil.
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Ollie
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I disagree.
Oil prices have a huge impact.
The price of oil dictates the price of fuel, rubber, plastic, anything that is made with patrolium. Then you have the prices of everything we import going up because of the higher fuel costs.
Now you toss in inflation (that IS coming) and the fact the politicians have refused to allow us to get our own oil, and I think the cost of crude could devistate an already weak economy.
Oil prices have a huge impact.
The price of oil dictates the price of fuel, rubber, plastic, anything that is made with patrolium. Then you have the prices of everything we import going up because of the higher fuel costs.
Now you toss in inflation (that IS coming) and the fact the politicians have refused to allow us to get our own oil, and I think the cost of crude could devistate an already weak economy.
Look at what high oil prices=high fuel prices did over the past few years, especially last year, everything went up. Prices went out the roof, shipping costs, metals, food, and basically everything else went up. That it its own hand caused people to spend more on fuel and less on everything else. It caused the slowdown in the economy.
My thoughts exactly. From what I can tell, crude oil prices put the finishing touches on an already weak economy. Are the investors so naive on this concept, or is it the greed of these investors that cause the rest of us to have to deal with the effects?
Its a complete monopoly. If crude oil prices rise, the price at the pump rises rapidly. When the price of crude comes down, it takes weeks on end of pump prices to drop by pennies. How is it that every other company in this country is in bankruptcy except oil and refining companies? For those of you in the lower 48 enjoy the cheap gas. Up here in AK the excuse ranges from seasonal production, the cost of shipping in additives, etc. How can our gas be the highest in the nation when we produce the most? Our gas prices are higher then Hawaii's and their fuels are all barged in. 
Ollie You hit smack on the head!!! WE vote for the least worst candidate. to somewhat maintain that we have a voice! lets face it money talks and we ( the backbone of America)are all broke
our country is so depended on oil and its products that the government can and has figured out how to munipulate everything with it. look what happened in the 70's WOW that was 30years ago. If any of y'all on here does any investing at all look at the plans that some of your money is in the big ones that have been around for the last 75 years all mine have a large fall and gain every 30-35 years.
Stock market started 1900's roughly
Great depression 1930s
wwII ended 1945
next so called major recession late 1970s
we have 911 and now Gas prices went up like crazy. The Government new we would empty our bank accounts into our gas tanks when that all ran out it would snow ball and shut down the economy because we couldn't pay for any thing but food and gas. 2008
Any one see a comparrision here and the gaps in years its just that time people and we happen to be smack dab in the middle YA YA.
all we can do is hold on for the ride.
Stock market started 1900's roughly
Great depression 1930s
wwII ended 1945
next so called major recession late 1970s
we have 911 and now Gas prices went up like crazy. The Government new we would empty our bank accounts into our gas tanks when that all ran out it would snow ball and shut down the economy because we couldn't pay for any thing but food and gas. 2008
Any one see a comparrision here and the gaps in years its just that time people and we happen to be smack dab in the middle YA YA.
all we can do is hold on for the ride.
If crude oil prices rise, the price at the pump rises rapidly. When the price of crude comes down, it takes weeks on end of pump prices to drop by pennies.
Oil prices jumped yesterday about $3 or so (due to the housing market supposedly becoming stronger, which may spark construction), and gas in my neighborhood jumped $0.26 this morning. What a load of a shiite. Oil could drop to $30 today and it would take 2 months to drop back down that same 26 cents.
the other thing that is strange right now is natual gas, it has patterned along with oil for ever yet, oil goes up and natural gas goes down?? yet our fearless leaders say nothing of converting vehicles to propane/natrual gas even though it is readily available and we wouldn't be tied to any middle eastern country
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