I am wondering what it means as an economic indicator, some of this stuff is over my head.


For me its a fucking STIMULUS PLAN!! I can start driving my Yukon around instead of my Accord and cost of doing business is way down!!!

12/10/2014 2:31:51 PM

gas prices haven't gotten this low since around 2008... oh shit.

12/10/2014 2:45:15 PM

We produce more oil now so there is more supply. Despite conflicts (and ISIS capturing fields) supply overseas has not gone down. OPEC doesn't have as much authority over the price as they did in the past.

I'm Krallum and I approved this message.

12/10/2014 2:52:59 PM

never mind I don't post in the lounge, bunch of idiots up in here

[Edited on December 10, 2014 at 3:28 PM. Reason : .]

12/10/2014 3:24:09 PM

also there's actually a decline in demand...supply has held steady and costs have dropped. Other oil producers (mostly Russian) actually went to OPEC recently to ask them to drop supply so oil prices would rise and they got laughed at.

OPEC can withstand the low prices, they have more cash reserves and lower cost of production. Other countries' costs are higher so they need oil prices higher to operate in the black. OPEC will deal with losses for a while if they can hurt their competition.

http://money.cnn.com/2014/11/26/news/economy/opec-oil-prices-production/

But back on topic, this shit is great. I'm gonna run out and buy a hummer!

12/10/2014 3:31:56 PM

slumping oil prices could disrupt some of the drilling operations in the Marcellus shale, which could hurt Pennsylvania. This will also disrupt investments in wind and solar.

12/10/2014 4:15:16 PM

^, ^^Ive read some speculate that OPEC didn't cut supply at their recent meeting for this very reason. They were trying to bankrupt some of the smaller US fracking companies or discourage their production, etc. The US has become a major oil/gas player in the past few years with this technology. (emphasis on that being pure speculation though)

This comes at a pretty good time for the US, during the retail season. Cheap fuel prices, in general, have meant happy consumers and this part of the year is when retail really needs to be killing it. When you consider how big of a portion retail/consumer products are of the US economy, it should help fuel our recovery????

The downside could be a possible return to volatility in fuel prices (though there is no strong evidence of this yet). The US has shown it can carry on even with pretty damn high fuel prices, albeit maybe slightly hobbled. What really fucks our day up is when prices go up and down like crazy (think 2004ish to 2007).

[Edited on December 10, 2014 at 4:37 PM. Reason : ROADTRIPPPPPPP]

12/10/2014 4:36:48 PM

Bottom Line:

It's not an economic indicator as much as it is a political indicator.

The Saudis slashed price of oil to USA as soon as the Senate became Republican controlled. Now with the victory of Cassidy, the Senate is filibuster proof and Keystone XL will get passed, thus giving USA competitive edge and greater control of the market.

Thank you republicans. And for all you dems, you should also say thank you to the repubs each time you fill up.

12/10/2014 5:11:06 PM

[Edited on December 10, 2014 at 5:49 PM. Reason : N/m. Misread]

12/10/2014 5:49:10 PM

^^ Keystone will not lower gas prices for any of us, it's not nationalized oil it's getting piped to sell to a global market

[Edited on December 10, 2014 at 5:56 PM. Reason : .]

12/10/2014 5:55:51 PM

^ correct. US producers are looking to export oil for more profit and need the pipeline to reduce transport cost to their terminals. This is big business at work and not for the benefit of the US population.

12/10/2014 6:52:13 PM

it means goodbye to polar bears and walruses

12/10/2014 7:54:02 PM

someone needs to invent a power plant that burns polar bears and walruses

12/10/2014 9:39:36 PM

I wonder if they are gonna start making Ford Excursions again.

12/10/2014 9:40:32 PM

Put me down for the Hummer H5 when production begins.

12/11/2014 2:33:21 PM

I heard the liberals were intentionally dropping gas prices to try to get votes in the elections.

12/11/2014 2:42:50 PM