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Will Collapse in Oil Price Cause a Stock Market Crash?

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Hospital Bob

Hospital Bob

I accidentally stumbled onto this page.  I am not endorsing any of it because I don't believe any opinions of any financial analysts anymore.
But this one paragraph (assuming it's true) did give me pause.  

"In an analysis published in 2009, Therramus pointed out that Black Monday fell into a broader pattern in which nearly every stock market crash and recession of the preceding 50 years had occurred shortly after a large and abrupt change in the price of oil. In the case of the 1987 Dow crash, it was foreshadowed by a tumble in oil price that ensued in the wake of disputes within OPEC - which had come to a head in the previous year."


http://oil-price.net/en/articles/will-collapse-in-oil-price-cause-stock-market-crash.php

2seaoat



The stock market will not collapse, interest rates will stay low, inflation is none existent, and the world is stable. Oil prices were artificially over priced, but like Z has been warning oil prices will steadily increase the next 25 years to incredible heights. Oil companies and suppliers of industrial products to the industry will suffer. Also, the stronger the dollar gets, the weaker our export industries will get, as their products become more expensive in foreign markets. This will have much more impact on the market than the direct effect of the oil prices dropping. Our balance of payments continue to get stronger. This country is on solid economic ground..

ZVUGKTUBM

ZVUGKTUBM

The long-term prospects for oil is higher. In fact, it is starting to creep back up now.

Enjoy cheap gas while it lasts; but it would be stupid to think it is going to stay as low as it is and go out and buy a gas-guzzling truck or RV. What we are seeing today is an artificial manipulation of the price driven largely by Saudi Arabia, which is upset about having to compete with surging production from U.S. shale fields. The move has temporarily set-back U.S. producers, who are making adjustments in 2015. When oil gets back to its nominal $100 per barrel price, U.S. producers will be roaring again.

Meanwhile, back at the ranch, the Obama Administration wants to permanently close ANWR off to energy companies (much to the chagrin of Alaskans), while he simultaneously just opened wide the Atlantic Seaboard to offshore exploration. After seeing what Brazil has been able to do in the offshore Atlantic, some are wondering if the U.S. can do likewise.

Ultimately, electricity from solar, and fusion and thorium reactors will supplant petroleum as our main energy source later in the current century. This is why it is important to embrace and not pooh-pooh the technologies that are taking us there.

http://www.best-electric-barbecue-grills.com

Hospital Bob

Hospital Bob

The price of oil spiked up after the head raghead croaked. Then yesterday it spiked down 9%. And now today it's spiked back up again.

This all tells me the price is being manipulated by suppliers, traders and financial institutions. It's not all a simple equation of supply and demand.



2seaoat



This all tells me the price is being manipulated by suppliers, traders and financial institutions. It's not all a simple equation of supply and demand.




Bingo.....Thom Harmann's radio show had an interview with Pap this morning and the very topic was the coincidence of the big banks dropping their commodity exchange division pursuant to legislative regulations and how one of his guests nine months ago predicted with precision that those contracts would start unraveling and the price of oil would collapse from the artificial arbitrage driven market. All great things for America.

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