Sunday Rant.... Have you noticed gas prices? Yep, theyre going down. The reason is not so complex. Put more oil into the market and prices will go down. Its not that countries are producing more, its that more countries are producing it. In particular the good old USA. Yes, the nasty country that uses technology to find new ways to do things. Despite our governments attempts to stop it, the USA is now producing more oil then it has in almost 50 years. Not everyone in the world is happy about it. OPEC nations and economic rivals such as China and political rivals like Venezuela are down right fuming. You see, lower gas prices give the American consumer more money to play with. This in turn strengths the U.S. dollar on the world maket. Countries, like those mentioned, were hoping that a continued weakened dollar might lead to the commodities market to use another currency for buying and selling commodities, such as oil. Thus, forcing the U.S. to print more money to meet its debt obligations. This in turn would cause the U.S. to slide into an even deeper recession then we have currently been in. Will these low gas prices continue? Probably not. OPEC nations and Venezuela are planing to slow down production to increase the price of a barrel of oil to over $100.00, currently the price of a barrel of oil is at a 20 year love of around $80.00. So enjoy the low prices while they last. I really dont think it will last long.
Posted on: Sun, 19 Oct 2014 23:22:52 +0000
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