By Michael Snyder, on January 27th, 2015 We are really starting to see the price of oil weigh very heavily on the economy and on the stock market. On Tuesday, the Dow was down 291 points, and the primary reason for the decline was disappointing corporate sales numbers. For example, heavy equipment manufacturer Caterpillar is blaming the “dramatic decline in the price of oil” for much lower[...]
Tag: shale oil
Boom: The Crashing Price Of Oil Is Going To Rip The Global Economy To Shreds
"If you were waiting for a “black swan event” to come along and devastate the global economy, you don’t have to wait any longer. Currently, the price of U.S. oil is sitting at $45.76 a barrel. It has fallen by more than 60 dollars a barrel since June. There is only one other time in history when we have seen anything like this happen before. That was in 2008, just prior to the worst[...]
Oil above $100? Never again, says Saudi Prince Alwaleed
Maintaining production is ‘prudent, smart and shrewd’ By William Watts NEW YORK (MarketWatch) — A well-known Saudi prince is making a big call on oil, saying that the $100-a-barrel threshold will never be topped again. “If supply stays where it is, and demand remains weak, you better believe [the price of oil] is gonna go down more. But if some supply is taken off the market, and[...]
Consumer Companies Issue Most Negative Guidance Ever Despite Lower Gasoline Prices
by Wolf Richter But the oil-price crash was supposed to goose consumer spending. The price of oil continues to crash relentlessly. WTI trades at $49.80 as I’m writing this on Monday after hours, down 5.5% for the day, and down 54% since June 2014. The oil-price plunge is eating into the American oil boom, munching on income statements and balance sheets of drillers that have gorged on junk[...]
This Time Is The Same: Like The Housing Bubble, The Fed Is Ignoring The Shale Bubble In Plain Sight
by David Stockman • December 8, 2014 We are now far advanced into the third central bank generated bubble of the last two decades, but our monetary politburo has taken no notice whatsoever of its self-evident leading wave. Namely, the massive malinvestments and debt mania in the shale patch. Call them monetary bourbons. It is no exaggeration to say that inhabitants of the Eccles Building[...]