$this->bbcode_second_pass_quote('Pops', 'O')bviously 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.
PeakOil is You
Falling Oil Price ≠ TEOTWAWKI
Re: Falling Oil Price ≠ TEOTWAWKI
by Tanada » Mon 04 May 2015, 10:55:01
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.
$this->bbcode_second_pass_quote('Alfred Tennyson', 'W')e are not now that strength which in old days
Moved earth and heaven, that which we are, we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not to yield.
Moved earth and heaven, that which we are, we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not to yield.
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Re: Falling Oil Price ≠ TEOTWAWKI
by Pops » Mon 04 May 2015, 11:00:44
The legitimate object of government, is to do for a community of people, whatever they need to have done, but can not do, at all, or can not, so well do, for themselves -- in their separate, and individual capacities.
-- Abraham Lincoln, Fragment on Government (July 1, 1854)
-- Abraham Lincoln, Fragment on Government (July 1, 1854)
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Re: Falling Oil Price ≠ TEOTWAWKI
by onlooker » Sun 07 Jun 2015, 07:11:17
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.
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.
"We are mortal beings doomed to die
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Re: Falling Oil Price ≠ TEOTWAWKI
by Pops » Sun 07 Jun 2015, 10:14:40
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
$this->bbcode_second_pass_quote('', 'T')he 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’.
This looks like the money quote
$this->bbcode_second_pass_quote('', 'T')he 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:
And those aren't all ev miles:
$this->bbcode_second_pass_quote('', '&')quot;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
The legitimate object of government, is to do for a community of people, whatever they need to have done, but can not do, at all, or can not, so well do, for themselves -- in their separate, and individual capacities.
-- Abraham Lincoln, Fragment on Government (July 1, 1854)
-- Abraham Lincoln, Fragment on Government (July 1, 1854)
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