Markets scramble to figure out impact of U.S. downgrade
Article Source: msnbc.com
from:msnbc.comOil falls over $4 as US downgrade spurs growth fears
Seeded on Mon Aug 8, 2011 10:12 AM EDT (msnbc.com)
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Sure oil prices fall, but I bet gas stays around $3.25 a gallon through the winter.
Pretty much the road my mind was going down, too. In fact, this article inspired me to create a spreadsheet so I can track the price of oil per barrel against the price of gas at the pump.
Oil can go up $0.10/bbl and you'll see at least a $0.05/gallon increase at the gas pump that afternoon. But, oil just dropped what? $15.00/bbl and I'm willing to bet the price of gas at the pump will be the same on my way home as it was when I drove in this morning - and probably for the next week. Of course, by then, the price of oil will probably have climbed back up so there will be no reason for gas prices to go down. . . So it goes.
Very cursory research just revealed to me that the last time crude per bbl prices were down to today's level ($83), gas prices at the pump (national avg.) were $2.81 - roughly $0.65/gallon lower than they were on my way to work this morning. Any takers on a bet that gas prices won't be anywhere near $2.81/gallon this afternoon? $3.00/gallon? Anyone? Anyone?
That was November 19, 2008, by the way, so it's not like inflation has really had a huge impact on these numbers for comparison purposes.
Debt is the problem and we have more of it now. People borrowed and they promised to pay back US dollars. The amount of dollar supply in the world is not enough to pay the total debt with interest. Stay away from commodities, gold, real estate and stocks. Borrowers will have to sell everything to find US dollars. If they don't, their creditors will!
It is a deflationary crash:
www.kondratieffwavecycle.com/economy/deflationary-crash/
I saw an interesting article, wish I had the link still, but basically the price of the gas is dropping as quickly as the oil drops but the gas stations hold out until they see it is really falling because then people will be on to them.
Most of these gas stations make a windfall when the price of oil drops, not only that but by the time they get ready to drop the price, oil goes back up so they never have to drop the price especially during the summer and busy holidays.
Since Jan 2010, crude has sold for an average (weekly) of about $86/bbl. Today it's at $83 - lower than the near 2-year average.
Same period of time, gasoline has averaged $3.07/gallon (nationally, regular grade). Today it's at a weekly average of $3.71 - quite a bit higher than the near 2-year average.
Something is wrong with this picture. Of course, the Petroleum Institute publishes a very nice chart actually showing the price of crude against the price of gas and, conveniently, it shows that gasoline generally follows crude. "Folllows" being the critical word. The price of gas lags going down. Not so much going up. As just about anyone who pays any attention whatsoever already knows.
Perhaps more of us should pay attention to the crude prices. When they go down, we need to avoid buying gas on those days. If we did that, I guarantee the price of gas would follow the price of crude down within 24 hours of any drop.
Well it looks like Obama found a way to lower gas prices, he just had to kill the US economy to do it !
All Praise to the Messiah !!!!!!!
The dollar is also going away so it looks like his transformation to a one world global socialist utopia is in full gear. Bought and paid for by Soros(evil rich socialist).
Yea,great,why in hell isn't gas prices coming down,greed,ripoffs,Obama
Round up all Republican criminals who get profited from the oil company ( Bush, Cheney, Palin ...) , Oild price will go down.
Don't forget your enabler party criminals. You know, the evil rich elitist democrat/liberals who need to keep people poor and dependent to stay in power.
Your ignorance is shining brightly.
What keeps the powers in place is the expected ignorance of the American public to attack the person least responsible for the downgrade. Possibly the people who protect all the Tax Subsidies for the thieves who keep Saudi Arabia in AAA STATUS while the rest of the world fails Shame on these poor misguided people, But unfortunately the Republicans love these people and depend on them for votes But notice everytime stocks drop oil falls substantially
funny part is that 3-4 a gallon gas is what is causing the economic crash, just as it did in 07/08.,...yet they say that the outlook for 2012 is 115 a barrel. Don't they realize that our country can not work with expensive gas and have left over cash to buy stuff. Just so stupid!
Thank goodness republicans protect oil company subsidies, they are so patriotic,ready to raise gas prices the moment our economy even looks like it's getting better. Real hero's they all are.
Keep your stock market, markets are for cattle, and people who need to be led along. Welcome to the slaughter house!
It is still utterly amazing how the price at the pump does not DROP when we find out oil has gone down.........and especially now it has dropped in dollar amounts. However, if oil had gone up just a fraction of a %, price at the pump would have jumped! Thank you oil traders and all others in the line up!
Got to love you. Continue to stick it to us!
This is nothing but a token drop in oil, it means absolutely nothing at all. Until oil falls (and it will) below $50.00 a barrel - Don't bet on a (world wide) recovery - IT'S THE OIL STUPID!
I'm glad this got some press though.For the last three weeks oil has been free falling and gas prices haven't moved because the debt crisis got all the press.So they will continue to collude and gouge and make huge profits.Shining a little light on them helps..but of course we have Labor day coming and the "fall blends"...and lets by all means leave their tax credits alone so they can "explore new resources"
Everyone look at what the TEA/GOP party did to US by their "debt Crisis" issue.
It looks like the whole world heard what the TEA/GOP parties did and now are taking the US to task. If America heads into another recession, the blame will fall onto the TEA/GOP party. The TEA/GOP party has done more damage to the US economy than they thought. The TEA/GOP party has done more damage to the US economy than they thought. They are totally responsible for the fall out financially, socially, morally and internationally. Americans will be paying for this for a long time. S&P failed to follow the prescribed protocol for the derivatives and other instruments generated during the Clinton-Bush presidencies after deregulation and that caused the housing debacle that triggered the recession. Anyone not believing this scenario is touched in the head. Republicans have blamed President Barack Obama for the first-ever downgrade of the government's credit rating. But Timothy Geithner said Congress owns the credit rating because the Constitution gives Congress the power to tax and spend. The blame belongs to Congress, and Congress alone. Wake up America!
I hate to say this , I'm a loyal Democrat, but Obama has shown NO leadership in since the elections - It (the Nov. Elections) gave Obama an elbow to the chin and he did nothing to return the hit. Brother either your playing street B-Ball, or just pactice dunking which is it? Get off your presidential as-s and clock him one!
Oil going down now that the GOP has achieved what it wanted, which was to melt down the economy a little more and then TRY to blame Obama for it?
Alas, did they finally realize they were in the same boat as the rest of us that they were trying to sink?
The inflated gasoline pricing of a few months ago and now again, was simply the "extended" GOP working to cripple the recovery, more and more, and planned along with the "uncompromising, debt-ceiling mess" t-party fringe, to deal yet another unprecedented blow to our economic recovery -- again, in a treasonous effort to undermine the recovery and blame Obama...
But, what did they do? Showed their own treasonous colors, and made a huge mess far worse, thank you very much you criminal, t-baggers!
But, the wall-street-owned and elitist managed t-gopers fooled very very few people... and they will pay dearly for their treasonous actions come 2012.
People are not going to so easily forget the despicable actions and names of paul ryan or -- particularly, eric cantor, anytime soon, believe me.
have a great afternoon.
right, you mean trying to save medicare for future generations instead of letting it fade away because of the give me mine now and head burying crowd. Summer of recovery 3, how do you like it now?
Then why haven't gas prices fallen??
So I guess by morning gas prices will fall 5% at the pump. Thats what happens when oil goes up, so Why not when it goes down. We need to give those oil companies more tax breaks, right Tea Baggers ?
What do teabaggers have to do with the price of oil? Try the traders on wall street and learn some simple economics or is that just the liberal left talking again.
What do you think closing up "holes" and Tax Breaks are going to do? The Oil companies have made alot of people alot of money, not just your so called "Fat Cats". Realistically, they will behave just like any other company or sector that sees a tax increase, they will pass it along to the customer. So, $3.25 gas @ $84 a barrel may very well end up as $5.00 gas @ $84 a barrel. i lived in Europe for 3 years. That was 15 years ago and we were still paying more then for gas than we do now. I think that if the tax breaks keep our prices level if not lower then leave it alone.
When the FAA shut down and quit collecting airline taxes everyone though they could buy tickets at a discount without the tax..Funny thing was all the airlines colluded and raised prices in the amount of the tax to gouge the public some more..Now if we lower their payroll and corporate taxes they will create more jobs and more tax payers will increase tax revenue right?..more right wing fantasy..How many jobs were created when Bush cut taxes to corporations ten years ago?..How about when his father raised taxes that led to the 90's boom?..
DMAC-1004611...So you don't think that the Tea Party holding the debt ceiling ( and American economy ) hostage had anything to do with tanking markets, oil furures dropping, credit rating drop ? I'll take a pound of whatever you are smoking.
Gas prices always take a week or two to respond to oil prices, how do people not know this already? The gas stations need to use up the oil they bought at higher prices first before they buy the cheaper oil and sell it for cheaper. You will DEFINITELY see a significant drop in gas prices with the recent drops in oil prices.
I doubt that they arent going to give up the gravy train of ripping us off. They dont make a hell of a lot with all the subsidies that are protected by the Republicans and Tea Party
The trick is to dump your gold before it hits the slippery slope......
Gas prices at $3.25 during winter? What alternate dimension are you living in?
Gas prices have remained still at $3.79 / $3.89 / and $3.99 all summer long since the government released 2 million barrels of oil a day for thirty days. The price had dropped only less than a few penny's at a high of $4.05 on the central oregon coast, in the first few days alone, then locked.
Gas companies say they are selling all the gas which they had bought at the last price at? Really? Then why was gas always going up by penny's and nickels and dimes, when oil futures kept on going up every single hour and day before then? And now that prices are shooting down on oil...the gas prices are locked in place? Maybe Shell and Exxon and all those gas companies wanted to break their last record of how much money they could earn.
Definately need an alternate fuel source. Car manufactures need to start puting the gas companies out of business. Where's our brainiac new scientists of the age? Where's all these so called smart college kids with all the new ideas at? Nowhere. We do not have any intelligent biochemist or chemical engineers anymore. Their all wanting to be business executives...because that's where the real money is. The real deal of what we need now is ENGINEERS, CHEMICAL ENGINEERS, BIOCHEMISTRY ENGINEERS.
We need good old fashioned hard working college level pukes who know how to get their hands dirty.
But that's the problem with todays college level IDIOTS. They all want to run their own business. Tell those brainiac stars at college and Universities, that we need ditch diggers too.
Yeah, that's the classic excuse - "We're just selling the fuel we paid $x.00/gallon for. . . we haven't got the cheaper stuff yet." Yet, as you point out, they don't wait to raise their price at the pump until they've sold all their cheaper gas. . .
But, the public keeps buying it. Sort of like the cheap headlines MSNBC uses to get us to read their stories. As long as it keeps working, they'll keep doing it.
The drop in oil prices might proove to be one of the benefits of the lowering of the rating. The rapid rise in oil prices a few months ago had a lot to do with slowing down our recovering economy. Now that the oil prices are dropping, maybe people will take the money spent on fuel and put it back into the spending.
Well... I guess since the Teabags just sunk the American economy for the next 5-10 years (and taking Asia and Europe along for the ride), I guess oil consumption will decrease. After all, when you've been made homeless and are starving to death in a gutter, a new car won't be part of the picture.
Now you get the picture
dreamer oil was at 116 a barrel here in canada we where paying 1.32 aliter of gas now oil is 83 a barrel a drop of almost 30 percent.gas went down to 1.23 a drop of only 8 percent.they must be geniuses on wall street because i cant figure out their math.
What demorcratic rhetoric! The T=party has been on BOTH sides for months to come to grips with the debt problem. BOTH parties fear the T-Party so much that nothing was done and now we are seeing the result. BOTH parties (Dem/Rep) are to blame for this mess. Pres. O, being the "leader" of his party has not displayed any leadership throughout this ordeal and all that has been seen, on either side, is a bunch of finger pointing.
There shouldn't be a single incumbent on the ticket in the next election. New faces, new plans and let's return to a democracy instead of taking the socialist path towards a single world currency. I'll feel better once the anti-Christ is out of the White h ouse
My suggestion on if you want to dump your stocks ask someone who isnt involved with Wall Street because they are not going to be truthful I saw the one on the Today show and he stated that everybody wants to invest with America because we have a great political system what does that tell you Do you think these people are a great political system are guess they are if you are a child like them
Check out this link: http://money.cnn.com/data/commodities/
Here you can see a graph clearly showing how much difference there is between gas and oil prices. Just pull up "gasoline" in the pull-down menu and pull up "light crude" in the "compare to. . . " pull-down.
Strange - my comment was to much for MSNBC when I suggested that maybe the solution to this rip off will be to setup on fire a few gas stations to stop this mafia style oil business
Yeah because thats an idiotic idea......