Beware oil's crash....

Discussion in 'Energy' started by Zoomie1980, Oct 6, 2008.

  1. Zoomie1980
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    Zoomie1980 Senior Member

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    ...We are not too far now from having the world's most critical commodity losing HALF it's value in less than three months! That is almost beyond belief. That dwarfs the stock market losses, or the housing bust.

    Cause....speculators, again.....we are now seeing runaway, as yet uncovered short sales in oil. They may drive this market into the 30's before its done and along with it, all the emphasis on alternative fuel and conservation....gas will not just drop below $3 but well below $2 and closer to $1. Unbelievable....
     
  2. dilloduck
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    dilloduck Diamond Member

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    Not really---science has failed us numerous times. It just so happens to be the "great" economic minds this time. The math didn't work.
     
  3. DavidS
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    DavidS Anti-Tea Party Member

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    Isn't....that.....good? :confused:
     
  4. Article 15
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    Article 15 Dr. House slayer

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    Emphasis mine.

    I think the OP is concerned that if prices fall to where they were say 10 years ago then the idea of alternative affordable energy will be put on the back burner and all but forgotten ... until the next time.
     
  5. editec
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    editec Mr. Forgot-it-All

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    I the price of heating oil doesn't drop to a reasonable price I may not be around to enjoy alternative energy.

    Let the price fall through the basement, says I.
     
  6. clane1987
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    clane1987 Member

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    let it fall but still seek an alternative resource
     
  7. Paulie
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    Paulie Platinum Member

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    I disagree. I think when China finally stops debasing their currency, their oil demand is going to rise much higher, causing prices to climb.

    Add to that, the fact that we are now starting to LITERALLY print money, as the Fed's got no more options left. We very well could see a perfect storm of inflated money supply, overseas Dollars being dumped, and China's currency strengthening, all of which will have no other affect than higher oil prices.
     
    Last edited: Oct 7, 2008
  8. Zoomie1980
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    Zoomie1980 Senior Member

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    No because that price may be as ridiculous as $140 oil. The trading price needs to always remain close to the REAL value of the commodity for market stability. Artificially low prices are as damaging as high ones.
     
  9. Toro
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    Toro Diamond Member

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    Good stuff.

    Falling oil prices will help the economy.
     
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  10. Zoomie1980
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    Zoomie1980 Senior Member

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    You and Brian both grossly overestimate Fed monetary policy to affect everything. It certainly can aggravate a situation, but it does not, and will never DRIVE a situation. The economy is far too large for the Fed to have anything other than a peripheral effect. The dollar is surging IN SPITE of Fed policy that should do just the opposite. Oil is tanking as is most other commodities IN SPITE of the Fed policies that should be having an opposite effect. It now appears that most massive Fed action in history is not much more than spitting in the wind of the forces effecting the market.

    I'm not going to say the Fed and central government fiscal policy doesn't matter, but that it simply doesn't matter THAT MUCH. Other forces far more than outweigh what the Fed can effect. About all the Fed can do is perform surgical strikes into the few areas it can have a positive effect.
     

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