I know here in LA/Texas most of us are kinda sweating the recent drop in oil prices. Oil is pretty much the driver for everything down here. Almost all the businesses are connected to O&G in some way. Just curious what thoughts are in other parts of the country.
I am not sure if its good or bad for the economy but I sure do like being able to fill up my pick up for less then $45.
I think its a good thing. It puts a lot more discretionary dollars in consumer pockets to spend on goods and services. For a lot of commuters it amounts to hundreds of dollars per month. For me personally, it sucks because I have ownership in several oil properties and the revenues are now half. But, I wasn't complaining for many years so its all good.
It's neither. All it will do is shift money around. The market is tanking a bit on the drop, mostly because we are dumping equities that suffer from low crude prices ...and we are now moving into equities that take advantage of the low crude prices. This is overly simplistic yes. But for here it sums it up. On the consumer level it frees up discretionary income for the avg Joe....cheaper gas and fuel oil will mean more to spend. That's good for out consumption based economy. The biggest winners will be the people take the extra money and use it save and or invest to put themselves on firmer ground for the future.
It's a good and bad thing. For the average person it's a great thing, but for anyone tied into the oil and gas industries they're going to get hit hard.
A portion of the district I'm responsible for at work is in Canada. We bill for our software (monthly recurring) in American dollars so the softening of the Canadian dollar due to oil prices is affecting us for sure. It's caused the price of our software to go up significantly in Canada and therefore our attrition rate is much higher there.
I'm actually kind of nervous that it's getting too low, and I'm not even sure what the ramifications of such low oil prices are Sent from my iPhone using Tapatalk
One good thing is ...opec is all but castrated ...can't say I am sorry to see it. Next issue is that the falling crude oil prices are showing a lack of demand globally ...speculation is a weak world economy, weak Economic out put marking for conditions that are slowing demand on the world stage big time. Couple that with opec being impotent in curtailing production among its member ship has made for a glut in production .... So a perfect storm for falling prices.
Opec is one of the reason the prices are so low. They have not cut production in the face of falling prices. One big reason may be the fracking operations going on in the US and talk of keystone. (Is it a coincidence that prices start dropping about the same time that the republicans won the senate and the house)they (opec) can make those two less viable options, they can close the operations down and then they go back to their same old games. This is the main reason we need our own production so we can compete in the open market and force prices down. http://www.vox.com/2014/12/16/7401705/oil-prices-falling And low gas and oil prices are nothing but a positive for our overall economy. If prices fall we use more so the industry will still make their money. The average person has more to spend so the economy will grow and our 401k's will benefit as a result,even if we are invested in oil stock.
it'snot an easy answer research .. "Mutually Assured Financial Destruction"... that will shed a little light on things all of the world economies are tied together...we are not on an island we are all linked..
The problem I have is why aren't the goods dropping with the fuel price? Just like the milk price on how dairy farmers get paid. When it goes up it goes up in the stores too. When their milk price goes down it never seems to go down in the store. Greed at its finest.
