Curious with the price of oil dropping almost daily, can we see tire prices start to fall too?
Quote from: Ace on January 18, 2015, 08:04:36 AMCurious with the price of oil dropping almost daily, can we see tire prices start to fall too?
I think that we will - about the time that diesel begins to fall to be in line with gasoline .... and the moon turns to Swiss cheese ... Seriously, why should they drop the price of tires? I'm gonna bet that they certainly feel "we took the hit with high oil prices and our margins get squeezed - now we have a bit of slack so why shouldn't me make some extra profit?" The Feds says that they can't *AGREE* to set prices and screw us that way but if all the big companies keep their prices up -- just by coincidence, of course -- why can't they keep prices where they want them?
The price of everything that gets shipped by truck or rail could drop, but won't. This drop in oil price is a blip, nothing more. It won't last more than another 3 months probably, and might start creeping back up sooner than that. As soon as the Saudi's (OPEC) accomplish their goal of forcing the North American suppliers to back off on their production, which is already happening in a fairly substantial way, the over-supply will ease and prices will go back up. OPEC just decided to flex a muscle and show that they are all about market share, not price. What I don't have a feel for at all is how high the price will go before it steadies. Could be $80 a barrel, could spike to $200 a barrel.
Brian
Time to buy oil futures!!
Yeah I hear ya!
It seems every other customer calling in for a quote request asks "that ought to be cheaper than last years trip with fuel prices dropping shouldn't it?"
My favorite response is "Well sure but then I'll need to add the price increase in tires, parts and INSURANCE that ought to bring it up about double of last years cost sound good now?"
After a short silence they say "OK I see the point, just do the best you can for us!"
Gotta luv the way they think though!
;D BK ;D
Time for the government types to sock us with more state and federal gas taxes before the price of oil goes back up. And while we're at it, why is the cost of a quart of oil still over $3 ????? Gerry H ???
Regarding how long the depressed oil market will continue ... Does anybody here have a good educated knowledgeable idea as to how long depressed crude oil prices and related will continue? I ask because I do not have a clue.
One example out of many why this might be important. Kern County CA is one of the leading oil producers in the 48 states. Kern County Government's $general fund$ is about 1/3 funded by oil sales. One can do the math.
Right now that government's budget $shortfalls$ do not look good. This might also affect State Of California's government. My pension comes from Cal Pers. Lots of us old coot retirees are beginning to get worried. Should we be?
HB of CJ (old coot) I love this Bus Conversion Forum! :)
A lot of states and the Feds are wanting to raise the fuel taxes now when prices are down, their thinking is we won't complain as much. When prices go back up those added taxes will hurt but they will already be there
The solution should be to tie any new taxes to the lower prices, if the price of fuel goes back up then they lose their new taxes, they would be looking for new ways to keep the current prices in place, as is they don't care.
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Alberta's revenue is significantly from oil, and this change has them already talking about a recession in that province, so they are sure worried. A significant employer for people in Nova Scotia is the oil patch, they've already been told they aren't getting picked up again soon, so they are going to be unemployed here rather than earning (and bringing back) 6 figures out west.
The thing that will cause the oil prices to come back is a renewed balance between supply and demand. The over-supply is caused by everyone, but the re-balance is going to be non-OPEC suppliers cutting their production. What would be worse for you - lowered revenues from low prices, or lowered revenues from non-production? Both are equally bad, I think, but production means employment, at least.
Brian
The fundamental rule of commodities is that low prices cause high prices and vice versa. All the government whinging about tax loss is a little self serving because most government resource revenue is volume based (as opposed to revenue based.) There will be an income tax impact on government revenue but that will take longer to arrive. It's never as bad as it looks and it's never as good as it looks either.
As long as fuel prices are low, I'm happy. All this talk about how it hurts our economy is rubbish. Low fuel prices helps our economy more then almost anything else.
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I like low fuel prices as well, makes my dollars go further. That being said, the prices will go back up when OPEC sees everybody starting to cap the wells again and drilling stopped. It costs a certain amount of money for exploration and to pull it out of the ground. With the abnormally low fuel prices the domestic production will cease as it won't be beneficial, then OPEC will start shutting down the valve. We've seen it before in the past.
I don't call 2 bucks a gal plus 'abnormally low', I see 4 bucks a gal abnormally high.
With the lower gas prices Americans are saving 500 million a day (fox business news), now that benefits everyone not just a few in the energy sector when fuel costs where overly high.
Government needs to learn to do with less instead of always demanding more, live within their means as they expect us to do.
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I agree that 4 bucks a gallon was a bit much. Prices around here ar 1.71. Figure the amount of taxes that are imbedded in that and the fuel itself is abnormally low. Thankfully fuel has not kept up with inflation. It has always amazed me the way people will complain about the price of fuel, but not about a bottle of water or their 5 dollar cup of SB coffee.
I travel the world for work, believe me 4 bucks a gallon is dirt cheap compared to the rest of the world.
Yes but the USA is not the rest of the socialistic world thank God (not yet at least but getting that way fast)
Idiots will always be around willing to buy designer water and faddish coffee for obscene money, always been the case, can't really help those people.
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The government is not going to allow us to cut ties with other countries we export our oil and import oil from the mid east there is to many tax dollars lost if we don't import oil the US receives over $.60 per barrel on imported oil do the math X's the oil we import vs what we export
I agree, the government is screwing us for the sake of tax revenue. They really are whores aren't they, likely not going to change anytime soon either
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We're a Michelin National account for an over the road trucking company that we own...have been with Michelin for the past 25 or so years and I have NEVER seen them reduce tires prices despite the rise or fall of oil. Only difference I see are tire prices rising faster when oil is high in cost. Our truck tires have literally doubled in price over the last 5 years!
"I agree, the government is screwing us for the sake of tax revenue. They really are whores aren't they, likely not going to change anytime soon either"
Someone say something about Hookers ... Or should I just go back to sleep?
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$2.09 regular---$2.59 diesel--$2.35 LP today in Oregon. That's fact. The following, well, you decide. The price of fuel will go back up when the US and Saudis are done messing with Russia's economy. It sounds like the Russians are going to pull back from the Ukraine border, so the price of fuel might be changing sooner rather than later. This hypothesis is based on my personal observations and has no basis in reality. For that matter, I have no basis in reality. But I out-swam more than 100,000 identical twins to get here, so that must stand for something. ;D
Will
No reduction in diesel here and very little on gas. Our economy is 80 per cent based on oil revenue. Our new governor has already made some pretty drastic changes because of the low oil prices. We have a $350 billion dollar shortage in the state budget that he is trying to figure out.....Bill
Hi Boxcar, in northern Nevada, the bordellos have signs over the doorway, that say what the customers always do first! And some people might recall, the US govt got into the cat house biz, when they confiscated the Mustang Ranch from Joe Conforte, but they couldnt seem to make a profit (?). Lvmci...
My figures for our state budget shortfall were way too high. The actual figure should have been $3.5 billion......Bill
"Hi Boxcar, in northern Nevada, the bordellos have signs over the doorway, that say what the customers always do first! And some people might recall, the US govt got into the cat house biz, when they confiscated the Mustang Ranch from Joe Conforte, but they couldnt seem to make a profit (?). Lvmci..."
Kind of strange Lvmci, oldest profession in the world, and the government cannot make a profit?
I am curious tho, where is this state that has a $3.5B deficit, just wondering.
BCO
Hard to imagine any government spending money it doesn't have.
Kind of strange Lvmci, oldest profession in the world, and the government cannot make a profit?
I am curious tho, where is this state that has a $3.5B deficit, just wondering.
BCO
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That would be up here in what was an oil rich state "Alaska" we are now in really bad shape.
Sounds like they might be loosing a few thousand soldiers also.
Quote from: Seayfam on January 24, 2015, 01:19:17 PM
Kind of strange Lvmci, oldest profession in the world, and the government cannot make a profit?
I am curious tho, where is this state that has a $3.5B deficit, just wondering.
BCO
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That would be up here in what was an oil rich state "Alaska" we are now in really bad shape.
Sounds like they might be loosing a few thousand soldiers also.
That's OK. They can see Russia from there!
That are a lot of Geetas ($35B) ... But when there is no sweat equity, money usually has no meaning to a politician.
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Hey, Boxcar, the state in question is Alaska. Our state economy is 80 per cent oil money. Our budget, for 2015, was based on projection of oil prices and what the state gets as it's share. For 2015, we are short 3.5 billion. And by the way, the world's oldest profession is not what everyone thinks......Bill
Hi, Bruce. I hope that remark was not meant to be attributed to Sarah. She didn't say that.....Bill
Short 3.5 billion that shot the hell out of the peoples share of oil profits in AK lol you better hope the State doesn't come and want all the money back they have been giving out over the years
the peoples money is in a separate pile....the hogs at the trough don't get to dip their grubby mitts into it with out a vote of the peoples... ;D