All Hokie, All the Time. Period. Presented by

The Lounge Board

`lag

Joined: 12/13/1999 Posts: 62574
Likes: 14988

What's this?

That's kinda true in that it acts like interest rates


price of gas goes up, cost of everybody's business goes up, from UPS to pizza delivery.

The issue here is that the US is energy independent because of shale oil, but oil needs to be ~ $40 for that to be profitable and it dropped to $32(?) so that's a pretty good hit to the oil industry in general and American business. Paradoxically, we'd all be jumping for joy if we didn't produce oil.

I'm pretty sure that high oil costs meeting highly leveraged Americans in the 2008 was the match that set off the great recession. Otoh, shale oil is what probably what pulled the US out of recession from 2008-2016.




[Post edited by Will Stewart at 03/20/2020 12:12PM]

(In response to this post by I85Hokie)

Posted: 03/09/2020 at 11:20AM


+0

Insert a Link

Enter the title of the link here:


Enter the full web address of the link here -- include the "http://" part:


75
Hide This

Current Thread:
 
  Lower oil = lower shipping costs for businesses right? -- I85Hokie 03/09/2020 09:38AM
  That's kinda true in that it acts like interest rates -- `lag 03/09/2020 11:20AM
  Lower junk bonds too ** -- lchoro 03/09/2020 10:45AM
  Labor costs are up, though ** -- reestuart 03/09/2020 10:35AM
  Only thing being shipped is disinfecting wipes, bottled water and TP ** -- turkeywinghokie 03/09/2020 10:04AM
  The problem is nobody is shipping anything, which is the root cause of the -- Fatman 03/09/2020 09:46AM
  No. Oil is down due to Saudi Arabia gas war w Russia this weekend. ** -- BobG 03/09/2020 10:08AM
  I disagree Bob. -- Fatman 03/09/2020 10:33AM
  Ok but who’s not shipping anything? I’ve never heard that... ** -- BobG 03/09/2020 10:59AM
  The drop in demand is greater than the one in 2008. -- Fatman 03/09/2020 1:47PM
  The people that aren't at work in China. ** -- Hokie360 03/09/2020 12:30PM
  Article -- HokieForever 03/09/2020 11:54AM
  That caused today's swoon, but oil was already down before this. ** -- Hokie360 03/09/2020 10:12AM
  Oil is a proxy though for overall international trade -- MrBayAreaHokie 03/09/2020 09:43AM
  Oil is a proxy though for overall international trade -- MrBayAreaHokie 03/09/2020 09:43AM
  Lower oil prices means gov't can increase gas taxes without you seeing it. ** -- Spud 03/09/2020 09:41AM

Tech Sideline is Presented By:

Our Sponsors







vm307