The decline in oil is a techinal correction imo. I don't really follow the market but i try to keep up with oil, energy is obviously a big part of our economy The price now is more in line fundamental wise regarding supply and demand
Oil prices since The Great Recession and since more fracking are back to pre hurricane katrina levels like right before. Remember when the shut down of gulf drilling drove prices up. They really never went back to those levels until the great recession. But they did go back up to post katrina levels for a while during obama's term. Other than general inflation oil is back to summer 2005 prices for a few years now Edit: katrina happened then the iraq occupation started falling apart and you had all that talk about geo political risk in the gulf. Regardless of fracking all that middle risk east has subsided
Trump was foolish to tie his presidency to stock market performance - something he has little influence on in reality. That tax cut put us in a tough position, because now, if we hit a recession, we won't be able to use a tax cut or stimulus to stabilize the economy without increasing the deficit well past 1 trillion.
Its not a technical correction. Its a bunch of people in west drilling and producing too much oil. Its game theory. The optimal solution is to produce less oil and everyone eats better. The best solution for any individual to produce as much as possible. Unfortunately for oil producers cartels are illegal in america.
Its not just drilling too much, fracking has changed the game. They dont have to drill offshore so fracking is cheap if the price is out of line by $20 what you're talking about in west texas is gonna happen. People gon rush to get that hot $20 But that wasn't happening after Katrina and its cheap. Its not just cost, people in oil cant believe how much in supply fracking has provided access to Peak oil is an outdated concept from just ten years ago Edit: when i said technical i meant supply and demand not price chart lingo
I talk a lot in threads about oil because it dictates a lot in our world. For instance my theory about middle east migration to Europe is because dictators dont have hundred dollar barrel oil and can no longer afford armies. Who cares about leaving Kurds in Syria. Sorry bros we got our own oil again. No reason to be here. Yall gon have to fix 1500 year old differences. We only cared about the oil Don't know why Trump left and do not care
Putin is only relevant in Europe because he is their natural gas supplier. I don't care about Russian interference. The price of natural gas in Europe is more important electricity and heat. It gets cold there And thats where he gets money from. You want to nullify Putin, invest in liquefied natural gas so we can ship it overseas and become their supplier. Nuclear weapons have really had an affect on reducing the chance of all out conflict because if you dont have nukes you really aren't equal. If we wanted to destroy iraq we could but we arent like that And who would stand up for them You have to cut their money. The price of oil what happened to Venezuela and its gonna catch up to Saudia Arabia
If you’re quick to post this then you’ll really like the potential recession coming thread that I’m going to post later!
