Are low crude oil and gasoline prices good or bad? (accuse, regime)
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Good for the average consumer who hasn't actually recovered from the last recession and probably drives an older inefficient vehicle.
Bad for alternative energy, one of the driving forces to items like Hybrids was the cost to fuel a standard vehicle. My aging pickup gets bad gas mileage but it'll do because I can fill it for $25 instead of almost $70 which is significant because I fill it at least 3x a month. Since I am a small biz owner and do my best to remain local and small business oriented in my spending my extra money goes into my local economy which is very service oriented.
Really it is just the Saudis. In most of the other OPEC countries, their cost per barrel is much higher. Many of these OPEC countries and also Russia are being fiscally crushed by oil prices being at such low levels.
The Canadian dollar is on its longest losing streak since at least the 1970s as speculation mounts that the central bank will cut interest rates back to the record low only seen amid the 2009 financial crisis, with almost nothing left to drive the country’s economy.
The currency has fallen for 11 straight days against the U.S. dollar, the longest run of daily losses since the country ended its currency’s peg to the greenback in 1971 and let it trade freely. The streak surpassed a nine-day run in April 2005, and Friday touched an almost 13-year low.'
The loonie traded as low as 68.74 cents US about five hours before the Toronto Stock Exchange open at 9:30 a.m.. The dollar was higher at 8:30 a.m., at 69.05 cents US — about 0.62 of a U.S. cent below the Thursday closing price.
Canada’s dollar — which hasn’t been below 69 cents since April 2003 — was also down Friday against the euro, British pound and Japanese yen.
The declines come during a week when market turmoil in China helped push crude oil, until last year Canada’s largest export, below US$30 per barrel for the first time in 12 years.
That stoked speculation there will be no quick return to the near-US$100 per barrel oil that fuelled growth the past decade. Recent domestic data have shown few signs that other parts of the Canadian economy are stepping in to fill the void left by oil.'
“It’s a perfect storm for the Canadian dollar,” said Andrew Kelvin, senior fixed-income strategist at Toronto-Dominion Bank. “Oil is at levels people hadn’t been considering except as a worst-case scenario.”
The streak began on Jan. 1. That’s when the loonie, as the Canadian dollar is known for the image of the aquatic bird on the $1 coin, weakened 0.1 per cent, according to Bloomberg generic pricing, which is based on input rates from currency price contributors.
Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and Bank of America Corp. are among the seven major forecasters calling for a repeat performance of the central bank’s January rate cut in 2015.
That reduction was the first of two the bank deployed during 2015 to guard against oil’s collapse.
Oil’s fall, combined with the rate cuts, have contributed to the loonie declining about 32 percent during the past three years. The three consecutive annual losses have combine to produce the loonie’s longest, steepest drop as a freely traded currency.
Macquarie Group Ltd.’s David Doyle, Bloomberg’s top-ranked forecaster for the Canadian dollar last year, Tuesday said he expected the currency to fall to a record low 0.59 U.S. cents, or $1.6949 per U.S. dollar, by the end of the year as he added his voice to those predicting a rate cut next week.
“It’s three strikes and you’re out,” Nick Bennenbroek, head of currency strategy at Wells Fargo Securities LLC, said by phone from New York. “With China and oil prices and the Bank of Canada all against the Canadian dollar, it’s sort of flat on its back right now.”
So it all began after we sanctioned Russia over Ukraine and allowing Iran to flood the market while the Saudis keep the pressure on North American oil producers to try and push us out of that sector just we have not much else that can make up the difference.
We made the mistake of not being diverse enough economy and we need to raise rates not cut them to try and keep an overheated Real-estate market propped up yet that will cause a housing crash as well as many to default on their car payments that have already maxed out their credit line without saving for bad economic times.
The Canadian dollar is on its longest losing streak since at least the 1970s as speculation mounts that the central bank will cut interest rates back to the record low only seen amid the 2009 financial crisis, with almost nothing left to drive the country’s economy.
The currency has fallen for 11 straight days against the U.S. dollar, the longest run of daily losses since the country ended its currency’s peg to the greenback in 1971 and let it trade freely. The streak surpassed a nine-day run in April 2005, and Friday touched an almost 13-year low.'
The loonie traded as low as 68.74 cents US about five hours before the Toronto Stock Exchange open at 9:30 a.m.. The dollar was higher at 8:30 a.m., at 69.05 cents US — about 0.62 of a U.S. cent below the Thursday closing price.
Canada’s dollar — which hasn’t been below 69 cents since April 2003 — was also down Friday against the euro, British pound and Japanese yen.
The declines come during a week when market turmoil in China helped push crude oil, until last year Canada’s largest export, below US$30 per barrel for the first time in 12 years.
That stoked speculation there will be no quick return to the near-US$100 per barrel oil that fuelled growth the past decade. Recent domestic data have shown few signs that other parts of the Canadian economy are stepping in to fill the void left by oil.'
“It’s a perfect storm for the Canadian dollar,” said Andrew Kelvin, senior fixed-income strategist at Toronto-Dominion Bank. “Oil is at levels people hadn’t been considering except as a worst-case scenario.”
The streak began on Jan. 1. That’s when the loonie, as the Canadian dollar is known for the image of the aquatic bird on the $1 coin, weakened 0.1 per cent, according to Bloomberg generic pricing, which is based on input rates from currency price contributors.
Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and Bank of America Corp. are among the seven major forecasters calling for a repeat performance of the central bank’s January rate cut in 2015.
That reduction was the first of two the bank deployed during 2015 to guard against oil’s collapse.
Oil’s fall, combined with the rate cuts, have contributed to the loonie declining about 32 percent during the past three years. The three consecutive annual losses have combine to produce the loonie’s longest, steepest drop as a freely traded currency.
Macquarie Group Ltd.’s David Doyle, Bloomberg’s top-ranked forecaster for the Canadian dollar last year, Tuesday said he expected the currency to fall to a record low 0.59 U.S. cents, or $1.6949 per U.S. dollar, by the end of the year as he added his voice to those predicting a rate cut next week.
“It’s three strikes and you’re out,” Nick Bennenbroek, head of currency strategy at Wells Fargo Securities LLC, said by phone from New York. “With China and oil prices and the Bank of Canada all against the Canadian dollar, it’s sort of flat on its back right now.”
So it all began after we sanctioned Russia over Ukraine and allowing Iran to flood the market while the Saudis keep the pressure on North American oil producers to try and push us out of that sector just we have not much else that can make up the difference.
We made the mistake of not being diverse enough economy and we need to raise rates not cut them to try and keep an overheated Real-estate market propped up yet that will cause a housing crash as well as many to default on their car payments that have already maxed out their credit line without saving for bad economic times.
Hate to say this GTO; but we deserve it for putting all our eggs in an American driven/owned oil basket.
Maybe now the once driving engine of our economy can begin to renew itself and start doing some research and development to bring our once huge manufacturing capabilities back to some semblance of the past.
Deficit budgeting is going to be the norm in ways we've never seen before and I hope some of the NIMBY's take it up the AZZ big time for fighting the building of refineries in our country so as to make us dependant upon selling the stuff as crude only to primarily one customer and then buying our fuel stocks from others.
We've been dumb azzes and are now learning to just what extent!
Then again, hundreds of thousands of people have lost their jobs already because of this international market manipulation and price fixing scheme.
Um, the Free Market sets the price of oil as it should be and you liken that to price-fixing?
Quote:
Originally Posted by T-310
The Saudis and OPEC have amped up their production to drive fracking into bankruptcy.
So?
If you can't compete, then get out and use the Capital more efficiently elsewhere in the economy.
Quote:
Originally Posted by T-310
I say stop all oil imports, rely on North American oil that keeps the wells pumping and the jobs safe and tell the Saudis to go eff a camel.
Stopping imports does not alter the global Supply & Demand of oils or their prices.
Quote:
Originally Posted by jim9251
With oil so low why are gas prices here still over $2 a gallon?
Because only 16 of your 46 operating oil refineries produce gasoline.
Quote:
Originally Posted by Spartacus713
There needs to be some balance in these prices. Nobody likes them too high, but now they are getting too low.
So your preference is to dump all of your money into the pockets of speculators?
Prices should be set by the Free Market, not speculators.
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