Now cheap gas is a problem WT*!!!!!

LikaRokBowTie · 10-29-2014, 10:35 AM

I read everyday financial news and lately the talk about falling gas prices has me SMH.As many of you know we had ever rising fuel cost over the past several years and sometimes oil was at or near current prices,but gas prices held steady and in some cases even went up further.So now there is a lot of talk about how lower gas prices can be a problem,now I didn't study economics,but first high gas prices were killing the economy and now low gas prices are a problem.Is this country nuts or what,you just can't win

Any economic or financial experts care to explain.

90503 · 10-29-2014, 10:40 AM

I think the cost of oil is sometimes used as an indicator of the over-all growth of economies....If the price and demand for oil are up, then economies world-wide are growing....(a good thing)....If prices free-fall, drop, then it's a "bad" sign...

Personally, I'll take the latter....lol....

AZCamaroFan · 10-29-2014, 10:45 AM

i don't know about world wide. gas spiked in the 70s when the enconomy was stagnant in the U.S. and then the bottom fell out in the early 80s when the economy was growing. all through the 90s when the economy was growing gas was cheap. and then it jumped in 2001 when our economy was dropping.

BLU DUCE · 10-29-2014, 10:46 AM

Gas prices are coming down because the USA is producing more oil than ever thru the new process of [Hydro Fracking] & we are less dependent on other countries.

Scalded Dog · 10-29-2014, 11:28 AM

The media always has to report in a way that gives the doomsday-est perspective: When gas prices go up, the reporting is endless on how devastating it is to consumers. When gasoline prices fall, the devastation to producers is what is highlighted.

It's like anything else, though: If you have something you want to sell, its GREAT if demand is high and prices are up... unless you are the person wanting to buy. And vice versa...

What the hell, today, I am the consumer, and it makes me very happy to spend less on gasoline, and have more money left for OTHER purchases. And I'm betting that this rings true for about 99.9% of the U.S. population, of which far less than .1% are actual oil barons who reap greater rewards from higher prices.

*Camaro_Corvette* · 10-29-2014, 11:35 AM

Agreed with whats been said so far.

It's BS OP. As fuel economy goes up, and more and more companies "big business" are going greener. This was the inevitable end game. It's not a sign of anything other than the media making something out of nothing.

mpiersd · 10-29-2014, 11:48 AM

Quote:

Originally Posted by LikaRokBowTie

I read everyday financial news and lately the talk about falling gas prices has me SMH.As many of you know we had ever rising fuel cost over the past several years and sometimes oil was at or near current prices,but gas prices held steady and in some cases even went up further.So now there is a lot of talk about how lower gas prices can be a problem,now I didn't study economics,but first high gas prices were killing the economy and now low gas prices are a problem.Is this country nuts or what,you just can't win

Any economic or financial experts care to explain.

It's purely a political/financial ploy. All of these "futures" investors that artificially ran up the price of gas over the last decade plus are set to lose their shirts and are basically threatening to take down the rest of the market with them.
Or to sum up, "screw you guys, I'm taking my football and going home".

Stingr69 · 10-29-2014, 12:33 PM

Gas prices go down and a bunch of energy related projects get cancelled. Good for companies that buy fuel, but bad for companies that find and produce fuel. Electric cars are now less attractive, solar power becomes less attractive, exploration and production companies lay off workers. The price (margin) the drillers can charge goes down. People with oil field rights stop drilling and wait for the price to go back up. It goes on and on...

Oil price is used globally as a barometer for worldwide economic activity. Some times the price of oil is moved up and down by other unrelated external factors but the measure is still effective at moving markets and interest rates. Not saying this is a valid indicator in every situation, just saying it has that effect.

-Mark.

10-29-2014, 10:35 AM	#1
LikaRokBowTie Drives: 221SS1LE Join Date: Oct 2008 Location: on your 6 Posts: 986	*Now cheap gas is a problem WT!!!!!** I read everyday financial news and lately the talk about falling gas prices has me SMH.As many of you know we had ever rising fuel cost over the past several years and sometimes oil was at or near current prices,but gas prices held steady and in some cases even went up further.So now there is a lot of talk about how lower gas prices can be a problem,now I didn't study economics,but first high gas prices were killing the economy and now low gas prices are a problem.Is this country nuts or what,you just can't winAny economic or financial experts care to explain.

10-29-2014, 10:46 AM	#4
BLU DUCE Drives: 2011 1SS/RS IBM Camaro Join Date: Jan 2011 Location: Chittenango, NY, USA Posts: 7,219 View My Garage	Gas prices are coming down because the USA is producing more oil than ever thru the new process of [Hydro Fracking] & we are less dependent on other countries. __________________

10-29-2014, 11:35 AM	#6
Camaro_Corvette 36.58625, -121.7568 Drives: Team 1LE Join Date: Mar 2008 Location: Earth Posts: 23,710 View My Garage	Agreed with whats been said so far. It's BS OP. As fuel economy goes up, and more and more companies "big business" are going greener. This was the inevitable end game. It's not a sign of anything other than the media making something out of nothing. __________________ I am seriously never serious vv V vv Next order of business

10-29-2014, 10:40 AM	#2
90503 Drives: 2011 2SS/RS LS3 Join Date: Nov 2011 Location: Torrance Posts: 14,564	I think the cost of oil is sometimes used as an indicator of the over-all growth of economies....If the price and demand for oil are up, then economies world-wide are growing....(a good thing)....If prices free-fall, drop, then it's a "bad" sign... Personally, I'll take the latter....lol....

10-29-2014, 10:45 AM	#3
AZCamaroFan Camaro6 2016-2018 Drives: sometimes Join Date: Mar 2008 Location: Phoenix Posts: 18,468	i don't know about world wide. gas spiked in the 70s when the enconomy was stagnant in the U.S. and then the bottom fell out in the early 80s when the economy was growing. all through the 90s when the economy was growing gas was cheap. and then it jumped in 2001 when our economy was dropping.

10-29-2014, 11:28 AM	#5
Scalded Dog Drives: 2011 1LT Join Date: Mar 2012 Location: Crestline, CA Posts: 3,029	The media always has to report in a way that gives the doomsday-est perspective: When gas prices go up, the reporting is endless on how devastating it is to consumers. When gasoline prices fall, the devastation to producers is what is highlighted. It's like anything else, though: If you have something you want to sell, its GREAT if demand is high and prices are up... unless you are the person wanting to buy. And vice versa... What the hell, today, I am the consumer, and it makes me very happy to spend less on gasoline, and have more money left for OTHER purchases. And I'm betting that this rings true for about 99.9% of the U.S. population, of which far less than .1% are actual oil barons who reap greater rewards from higher prices.

10-29-2014, 12:33 PM	#8
Stingr69 '69 Owned Since '79 Drives: '69 Z/28 LeMans Blue w/White Join Date: Oct 2008 Location: LR AR Posts: 1,848 View My Garage	Gas prices go down and a bunch of energy related projects get cancelled. Good for companies that buy fuel, but bad for companies that find and produce fuel. Electric cars are now less attractive, solar power becomes less attractive, exploration and production companies lay off workers. The price (margin) the drillers can charge goes down. People with oil field rights stop drilling and wait for the price to go back up. It goes on and on... Oil price is used globally as a barometer for worldwide economic activity. Some times the price of oil is moved up and down by other unrelated external factors but the measure is still effective at moving markets and interest rates. Not saying this is a valid indicator in every situation, just saying it has that effect. -Mark.