Dow futures off more than 300 pts; oil sinks below $28

Yahoo News ^ | January 20, 2016 | Jenny Cosgrave

[John W]

U.S. stock index futures pointed to a sharply lower open, with Dow futures sinking in excess of 300 points as European and Asian shares tumbled in the wake of renewed oil price weakness.

European stocks fell sharply shortly after market open, with the pan-European STOXX 600 down in the region of 3 percent after a weak session in Asia and fresh lows in oil.

[VTenigma]

We are all so screwed, thanks Obama.

[thackney]

believe they were the fourth-largest oil producer in the world even with the embargo in place.

They are down to 7th place in 2014.

http://www.eia.gov/beta/international/rankings/#?prodact=53-1&cy=2014&pid=57&tl_id=1-M&tl_type=a

[rollo tomasi]

"When everyone is selling, it might wise to look for some bargains."

Hard to expand where stagflation - regulation - out of control private/public spending/debt - corruption that everyone raises their fist at but some how gets worse after each election - lack of economic fundamentals etc... are ingrained and choking our future to death (Oh those future liabilities too).

[thackney]

We use 12 million bbl a day in imported oil.

Our total imports are down around 9~9.5 mmbpd, but our net imports is 4.5~5 mmbpd.

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MTTIMUS2&f=M

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MTTNTUS2&f=M

However, if prices continue to stay low, we will be importing more.

[rollo tomasi]

Obama makes the symptoms worse; he is far from the actual causes.

[DungeonMaster]

I know there are many folks who work in the oil industry, but I wish someone could explain how lower oil prices are so terrible for the rest of the economy. It’s my understanding that our modern economy is very energy dependent. Cheap oil would be bad for the oil companies of course, but what about everyone else who are consumers of oil and all of the products made from it? Certainly far, far more people are oil consumers than oil producers.

Maybe the drop in oil prices is really just an indicator of a bigger problem. Cheap gas should be getting used but it isn't. Gas is cheap because demand is gone. Where did it go. The hidden recession that Hussein doesn't want you to know about looks like a good deal in gas prices but it's really a symptom.

Second point: In Iowa all agricultural industries are in the tank because demand is down and the desire for ethanol is down. So there goes John Deere and the value of farm land and farm income. The company for whom I work is supported by the ethanol industry and we are really slow right now.

[thackney]

Gas is cheap because demand is gone.

Demand is up, not down. Prices are down because supply grew faster than demand.

[Buckeye McFrog]

Demand is up, not down. Prices are down because supply grew faster than demand.

They did still teach that stuff when I went to school. At least to those of us who stayed awake for it.

[LS]

I’m guessing 30% off the 18,000.

[Mr Apple]

Market opens soon - hope it’s doesn’t open and drop 300 points or more the first 30 min of trading. :(:(:(:(

[mrsmith]

No worries... China’s Plunge Protection Team is armed!

[IYAS9YAS]

I know there are many folks who work in the oil industry, but I wish someone could explain how lower oil prices are so terrible for the rest of the economy. It's my understanding that our modern economy is very energy dependent.

Well, yes, lower gasoline/diesel prices will help those heavily dependent on those products. However, think about this; every direct (i.e. people directly employed by the company involved in drilling/extracting, etc...) is supported by a vast network of suppliers. When one drilling rig or well is shut down, then that rig or well no longer needs any supplies, workers, or support. All those involved will have to find other places to pick up that slack, or lay people off.

On the flip side of that, for every oil worker and support person who were making money on those jobs and have found themselves out of work, there will no longer be those people spending the same amount of money in the economy.

So restaurant jobs, stores, local business, shipping, and a multitude of other jobs that were not directly related to oil production, but a beneficiary of it, will now shrink. Then those people who were making money from the results of oil jobs are no longer making money from the oil people, either.

[central_va]

On the flip side of that, for every oil worker and support person who were making money on those jobs and have found themselves out of work, there will no longer be those people spending the same amount of money in the economy.

So restaurant jobs, stores, local business, shipping, and a multitude of other jobs that were not directly related to oil production, but a beneficiary of it, will now shrink. Then those people who were making money from the results of oil jobs are no longer making money from the oil people, either.

Replace the words "oil worker" with "manufacturing worker" and the rest would be true too.

[IYAS9YAS]

Replace the words "oil worker" with "manufacturing worker" and the rest would be true too.

Yes. True.

And, jobs will shift, some will benefit, some will not. Those benefitting from low oil prices will create more jobs, and those will needs support, and will also support others. It's the nature of the free market. The problem is, we no longer have that free market.

[Lazamataz]

WE ARE UP 25 PTS, now we are screwed for sure.

[Lazamataz]

OH NO we are down 182, now we are screwed for sure.

[John W]

It’s trying.

[Lazamataz]

OH GOD now we are down 223, now we are screwed for sure.

[1Old Pro]

The Obama Great Recession will ensure a GOP President.

[thackney]

Replace the words "oil worker" with "manufacturing worker" and the rest would be true too.

Yep, those making pipe, valves, fittings, pumps, motors, actuators, controllers, cables, etc..

All those people that made things the oil companies are no longer buying.

Hundreds of Billions of dollars no longer being spent by oil companies are a lot of indirects without those orders.