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View Full Version : Are Increasing Oil Prices A Danger To The World Economy?



Northern Paladin
Tuesday, August 16th, 2005, 04:48 PM
Right now Oil is up. Crude oil is now $70 a barrell compared to $60 just a few months ago.

Will sky rocketing oil prices have a negative impact on the World Economy?

The American Economy as of yet remains robust in spite of the spike in oil prices.

Gas in America now cost $2.41 a gallon the highest it's been in over a decade. I think if it goes unchecked it's wake will be felt.

Another question that comes to mind. Is is this Outrageous Spike in oil prices artificially created or is it reflective of demand and supply?

What is the price of gas in Europe?

simplex
Tuesday, August 16th, 2005, 09:20 PM
Uh its hovering around $3.00 where I live.

Requiem
Wednesday, August 17th, 2005, 04:10 AM
I hope your joking, the answer is obvious :P. Inflation figures out today show that it has definitely had an effect, and how can it not? If you pay more, your worse of. It isn't going to get much better I don't think.

simplex
Wednesday, August 17th, 2005, 06:34 AM
Yeah actually I read somewhere that gas prices havent changed since world war 2. Considering inflation and all.

Todesritter
Wednesday, August 17th, 2005, 09:15 AM
While on the one had, this has an effect on the price of the eggs you eat, since they are transported from farm to market with petrol, and the chicken feed to grow them is transported from grange to farm with petrol, on the other hand the whole reason behind economy is that everything can adjust accordingly over time to the proper and appropriate value.

Thus, as alarming as a price increase in absolute numbers might be ( I think of my grandfather's complaint about the world going to hell 'Time was, I could fill the tank for less n' a buck...'), it is largely only a statistic to be hyped by the alarmists in America who want a further blank check for policies in the Mid East, and Iraq.


Vote those suckers out of office, pay your bills, and the economics will gradually adjust, even if those suckers say the end of the world is going to happen unless we defend a certain dollar amount per barrel of crude.

In the end, the farmer raises the price of eggs, the trucker raises the price of transport, and you, whatever you do, raise your cost per hour on doing so, while the government decides whether or not to find some way of counteracting all the adjustments; if it is cheaper to re-value the currency and whatnot.

Uwe Jens Lornsen
Friday, November 9th, 2018, 11:00 AM
Oil producing countries in general benefit from high oil prices , while oil importing countries
generally suffer by high oil price .

So it is thought , and in a static non-movable situation , this might be right for the avarage consumer ,
especially car owners .

And of course , there is a difference between Global Economy , National Economy , Big Business Economy ,
Small Business Economy and Consumers Economy .

Since the U.S.A. has started to pump as much oil out of it's soil , as countries like Russia and Saudi Arabia
with more than 10 mn bbl per day , the USA should benefit from higher oilprices .


Two articles from May 2018 about this topic :
https://www.marketwatch.com/story/higher-gas-prices-doesnt-hurt-the-us-economy-as-much-anymore-the-fed-says-2018-07-13


While higher prices at the gas pump slam consumers, the economy has benefited from all the new jobs, new businesses and tax revenues generated by a surge in domestic drilling for oil and natural gas.
...
The good news is, more and more of that money is being spent in the United States instead of being sent to Saudi Arabia, Venezuela or other countries that have long supplied oil to America.

“Higher oil prices now imply much less of a redistribution of purchasing power abroad than in the past,” the Fed said, “as much of the negative effect on GDP from lower household consumption is likely to be offset by increased production and investment in the growing U.S. oil sector.”

The bank’s conclusion is not exactly a state secret. When oil prices soared earlier in the decade, higher gas prices hurt the economy far less than expected. But when prices sank, the oil patch was hit hard and that did undermine GDP by reducing business investment.





It has long been thought that high crude prices hinder the economy by demanding consumers to spend more on gasoline, leaving less disposable income for other things. However, America’s newfound success in oil production challenges old beliefs about the impact of higher crude prices on the U.S. economy.

In fact, the U.S. economy grew at its fastest rate in almost four years during the throughout the April-June quarter, despite notions that rising oil prices hurt the economy.

President Donald Trump has expressed his concerns with rising oil prices.

https://www.manufacturing.net/news/2018/09/rising-oil-prices-havent-hurt-us-economy-so-far


And I honestly think , that Donald Trump's demand to Saudi Arabia delivering cheap oil had cost the
Republicans some votes at the midterm elections 2018 .

A right nationist and patriot wishes the country to prosper , and not the selfishness .
But of course , when seeing into the future , might even want to leave scorched earth behind him .