Oil prices

[Ace]

Curious with the price of oil dropping almost daily, can we see tire prices start to fall too?

[Oonrahnjay]

Curious 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?

[bevans6]

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

[Dawgs]

Time to buy oil futures!!

[B_K]

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!
  BK 

[Gerry H]

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

[HB of CJ]

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! 

[digesterman]

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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[bevans6]

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

[bobofthenorth]

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.

[John316]

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.

[Dawgs]

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.

[digesterman]

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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[Dawgs]

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.

[digesterman]

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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