Skip to comments.Fall in Oil Prices Won’t End Soon: Pro
Posted on 06/25/2012 12:56:51 AM PDT by Uncle Slayton
The increase in demand for oil from emerging countries is not enough to counteract the fall in demand from established economies, Alejandro Barbajosa, oil markets specialist at Argus Media told CNBC.
Oil prices are decisively lower than three months ago and Brent Crude [LCOCV1 90.39 -0.59 (-0.65%) ] fell to below $90 per barrel last Thursday, its lowest level in eighteen months.
(Excerpt) Read more at cnbc.com ...
If the price of oil continues to crash, the very little drilling in the US that remains will be shut down and our oil companies and oilfield workers will suffer.
BS... the factories I work with here in the US are so busy they can’t keep up with demand. Businesses are starting to spend money... they want the product and they want it now. Methinks it’s because they know Obama is toast.
There are factories in the US that are busy?
Not in this economy.
If demand for oil was high, the prices would not fall.
Oil prices are plummeting, just like the economy.
My vendors cannot keep up with orders. I have one vendor that takes five days just to enter an order and bill the customer. The main problem is no one is carrying inventory to fill the needs of business. Everything is being made to order. No, we are actually coming out of this morass and I look to 2013 to really boom.... especially so with Dems out of power.
The oil market was another bubble that popped. Supply exceeds demand and the price drops.
The Marxist knows he had no chance of winning with $4.00 a gallon gas.
Any enterprise that makes business decisions based on an assumption 0bama is headed for defeat is led by fools. The election is wayyy too far off... and the gnat-like attention spans of voters won`t let them understand the structural weaknesses in the economy that have laid the groundwork for the price drop... i.e., relative strength in the dollar, vs. other global currencies; dropoffs in manufacturing and durable goods orders, etc. All they`re going to see are gas prices (by then very likely) below $3, and 0bama is going to benefit politically.
the price will continue to drop until Nov 6 .. people need to get a clue
I think with all the books being obviously cooked and in contrast to what people are observing with their lying eyes, they have gotten the clue, and I expect a wipe out in November.
It would be nice to see the price of food drop.
Have you bought a box filled with air and a couple of corn flakes lately?
My weekly grocery bill, for one (self & cat) has gone up ~120%, over just the past 11mos. I’m still continuing to ‘prep’, but have slowed-down just a wee bit to compensate/balance-out.
I suspect these declining prices can be tied to the strengthening of the U.S. dollar in recent months as Europe is facing a disastrous collapse.
I recall Zer0 threatening to tap the SOR. Did he do it?
The little store up the road is getting $5.00 for a 12 ounce package of bacon. $3.75 for pack of Potato rolls.
The bread is so flimsy it rolls up on the knife before you can spread the peanut butter on it, that’s why I buy the rolls.
Around here, it’s up to $7.85/lb from $4.89/lb, for bacon. I bought 5 x 12-lb boxes back at $4.89/lb, and froze them in my 26cuft freezer, along with a lot of other things which have also gone way up in the past few mos. The 10oz USDA Choice Filet Mignons from AllenBros.com are thru the roof now, as is everything which moves by truck/plane/rail. I haven’t gone cheap (yet); just cut back, so far.
Coming very soon:
The volatility of the Middle East just went up another notch or two when the new leader of Egypt announced the capital will eventually be Jerusalem. Looks like deja vu all over gain.
I believe the Saudis have owned our presidents since the first Bush. Someone is sponsoring all the muslims moving here and buying franchises that most Americans can’t afford. And us buying their oil instead of drilling for our own is how they pay for it. Saying you want to drill and not drilling brings zero barrels of oil out of the ground.
I caught some newsie commentator a few weeks ago say that the decline in oil/gas prices was due to the declining (world) economy.
That doesn’t make since. It was NOT a roaring economy that sent the gas prices over $3 and nearing $4 due to demand.
Gas prices started falling when, supposedly, there was talk of Obama going to release oil from the Strategic Reserve. [Did he, or was it just pre-election rhetoric?]
Something else is behind this recent decline.
One article a couple of weeks ago said that Obama had made a deal with the Saudi’s to reduce oil prices until after the election.
That sounds more likely.
The economy was producing decent numbers through the 4Q11 and 1Q12. During the second quarter almost all of the economic indicators have rolled over and are either negative are heading negative. The economy has slowed significantly even from it’s anemic rate.
My wife works in a factory. She had mandatory overtime everyday last week, one day was 12 hours.
They’re backing off a bit this week, but it’s mandatory overtime today.
Saudis are pumping over 10 Million Barrels a day
More Oil is being found ( damn lies by environmentalist lied )
Hurricane season could make cost go up.
From 1970 until 2010 the price of food dropped 30% relative to the earning power of the average American. That's a pretty big number.
Even with the recent uptick, a large part of which is energy related, we still have some of the cheapest food in the entire history of the world.
Whatever the reason for the decline, you can be sure that Obama will take credit for it in the campaign.
And you can count on any economic numbers that the government produces to look increasingly rosy as we approach November.
The only way Obomba can win is to lie every time he opens his mouth. Of course, that’s the one thing Obomba is really good at.
Hope you’re right.
One of my customers used to take 15 loads a month.
He’s down to four or five these days...
We rotate our bulk buys and there is definitely sticker shock when it comes time to replace things.
We invested in a Jacard meat tenderizer...about $25 on Amazon. Basically, many razor sharp knives that tenderize the meat and cut brining and cooking time, as well.
Whole muscle cuts have become quite tough. A friend who buys from a specialty butcher has also commented on recent steaks being tougher. I see less marbling in rib eyes, too. I think all but the premium butchers are selling grass-fed beef, due to the price of corn, or at least shortening the fattening-up period. . OTOH, corn is pretty low for June, especially considering we have drought conditions in so many places. I have also read that ethanol subsidies were cut, which would remove that pressure on corn prices.
I know I can no longer justify the prices from Allen Brothers and many people report that the quality of other premium meat vendors has dropped.
Home dry-aging is becoming popular.
Thanks for the tip on dry-aging. I have many, many, many Filet Mignons, Steakburgers and 3-5lb Rib Roasts from ABSteaks.com (at 2011 dollars) in the huge freezer, but when they’re gone, that’ll be it. I’ll check-out your link’s feasibility for me.
Did they have layoffs previously?
We are finding most places are short staffed and that is why a small uptick in business means delays. If they hire more and business drops off they have to layoff again. Contrary to popular belief most businesses do not do that willingly. OTH, they risk orders going elsewhere to get serviced.
Yeah I saw that when it came out. Saudi production levels have a marginal impact at best. The synchronized global economic slowdown has a far larger impact and is the cause of the current price decline.
Oil prices are falling because, despite the fact that people have free time thanks to the 0bamunists ecnomics making them unemployed, they can’t afford to go anywhere, so demand has dropped.
What does she make coffins? ;-)
The Saudis are much more afraid of Iran than we are. It is a Sunni/Shia thing. It would also shut down a lot of other competitors with higher fixed cost.
I have found that all the pallet, box and crating people in the lumber industry are very busy. Some of them have had record years in the last two.
It is the effect of the cheap US dollar on the world economy. It makes things more expensive here in the US , but less expensive overseas.
For example, say you are a Canadian company in the market for a new excavator. A few years ago the CAT model was probably too expensive and you would have bought the Hyundia instead. Now because of the strength of the Canadian dollar in relation to the US dollar the CAT is a value delivered to your business in Winnepeg. So Caterpillers factory orders go up. Therefore, alltheir suppliers of parts, crates to hold the parts , etc. go up.
She works for a company making medical appliances, plates screws, pins, etc. for broken bones and so forth.
They allowed attrition to reduce the work force a bit, but she has overtime at least 2 days a week,, usually voluntary, but occasionally forced when they run behind.
Any orders received by 5 pm MUST be on the Fedex truck before 6:30 PM, and there are hundred of orders that arrive at 5 pm that MUST be in an operating room anywhere in the US by 5 AM next day, ready for surgery.
Zero mistakes allowed, and ANY mistake, even the slightest, such as puting the part in the box the wrong way, usually is recorded by the doctors cell phone camera and arrives as a complaint the same day.
Oil Prices are a joke, worldwide we are using less oil per day than we were a decade ago, but the price keeps going up, well beyond the rate of inflation.
Its a speculator driven market, has nothing to do with demand and supply anymore.
They aren’t selling grass fed beef, it takes 3-4 years for a cow to reach slaughter weight when grass fed, and it tastes completely different than corn fed beef. Corn fed beef is slaughter weight in as little as 14 months
Anyone selling grass fed beef is charging a premium for it.
What may be happening is folks are slaughtering the corn fed beef sooner, or restricting the access to the amount of corn the beef have available.
Though this is generally counter productive since this means a lighter cow at auction, which is where they make their money.
The fall in oil prises is for the November election. They will rise right after it is over.
Actually that’s not true, factories are busy, lots of places are busy... many companies are sitting on cash, the issue is they AREN’T HIRING.
Why aren’t they hiring? Mostly because the current administration, and the democratic congress that was in power until 2010 introduced so much uncertainty to the market that they aren’t willing to hire unless they have NO OTHER CHOICE.
Would you hire someone if you weren’t sure what exactly it was going to cost you??? Not if you didn’t have to.. or if you could get hit with some retroactive tax? or you don’t know what is coming next? Nope.
The other reason is efficiency, because we have created so much efficiency in most manufacturing in the states, demand uptick doesn’t equate to mass hirings like it used to.
However the single biggest issue is “UNCERTAINTY”.. companies will not hire if they don’t know what is coming next, and Obama and Pelosi and Reid introduced so much uncertainty into the system that no one is going to hire anyone unless they absolutely have to.
Europe is depressing the greater macro system, but its incompetent and anti business government that has been the main culprit in supressing hiring.
Interesting. I sure know a lot of older people getting hips.
As a kid I remember people being upset when Canadian coins were given out as change at stores because it was worth less to unsuspecting customers.
Notice the Food Share of Disposable Income goes from 13 3/4%
down to 9 1/2%, which is a 30% drop.
“The fall in oil prises is for the November election. They will rise right after it is over.”
Well of course, we all know that Obama has connections with the OPEC ministers, the world’s oil companies, George Soros, the oil speculators and Ahmadinejad and they are doing things to bring down the price of oil during the worst economy in the history of our nation.
no sense over killing on prep
People who think that Obama has some secret power to intentionally control gas prices are exactly as goofy as the people who thought Bush had that power.