It is always great when groups publish reports that put common sense in more fancy terms. I wonder how much time and money went into generating that report?
No kidding
tokyogai
5/23/2011 10:03:47 AM
It is about time someone told the emporer he is wearing no clothes. Of course this will effect consumer confidence and the economy. I wonder why it has taken so long for people to realize this. That extra $20-30/ week in the gas tank is money that will not get spent elsewhere. If oil prices stay this high it will hurt the recover- duh
Did you say "Paris-based?" As in French? Let me count the jokes I could make...
Gas Prices Up and then Down and then Up
ProfR
5/23/2011 10:13:07 AM
I think the annoying thing here is that we keep seeing the same story over and over again. Oil and Gas prices increase, people get upset, spend less in other areas -- then oil and gas prices goes down, people are happier and spend more elsewhere -- then oil and gas prices go up again, people get upset, people spend less elsewhere. What we need from a group like this is how do we end this cycle?
Re: Gas Prices Up and then Down and then Up
TelecomFreq
5/23/2011 10:20:50 AM
i would think the only way to break this cycle is to move away from oil as an energy source. Natural gas is a good option that has been talked about on this site before, as is solar and other alternative sources.
I think the real key is to not depend so much on a signle source and better distribute our use so an price bump in one does not have such a drastic impact.
I believe $4 a gallon is the threshold most people, including myself, start to think about driving less and spending less.
The unpredictability of energy prices is causing the economy to stagnate. Companies are reluctant to expand because their shipping costs to bring their product to market may rise and therefore postpone hiring the new salesman or senior VP.
A consumer who was thinking of buying that flat screen TV may think twice. Finally, a potential homebuyer also may decide to hold off on that purchase when he or she factors in the price of commuting to and from work into their monthly budgets.
While the economy is in recovery, energy prices will play a huge part in how strong the recovery will be this year.
Re : Surprise: Oil Prices Go Up, Spending Goes Down
yalanand
5/23/2011 11:27:41 AM
But if we’re lucky, things will be calm and prices will fall.
John,
Do you think Japanese rebuilding efforts will keep the oil prices higher ?
Re: Re : Surprise: Oil Prices Go Up, Spending Goes Down
John Jordan
5/23/2011 11:29:32 AM
I think rebuilding in Japan as well as the massive infrastructure work going on in China will keep prices high.
Well it's going down today! There is some liquidation in commodities. A lot of the rally was fueled by speculation linked to QEII, which ends next month. I say oil/gas trade down for the next month. Gas back to $3.50 at the pump for the summer driving season.
$3.50 would be great news for the economy if that were to be the case for this summer. I hope you're right.
By the way, can anyone explain that when the price of oil goes up, gas stations almost immediately raise prices at the pump. However, when the price per barrel declines, it takes a long time before prices at the pump go down? Just wondering.
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