European Union Forums

[Benn]

Over the past several weeks or about a month, fuel prices began to sharply go down. Now the price for one barrel is about 77$. Prices started falling when the American companies began to go bankrupt, one by one.
The reason that the price decreases is due to the diminution of demand for fuel on the world market.
Some experts believe that if this price for fuel maintains at this low level, it could save the world economy from the overall crisis.
What do you think about that?

[Steven]

The low prices for oil should definitely help us. Actually we can even remember the days when we could use the cars without think about how much money we spend for fuel

[Faw_Peter]

I'm sorry to disappoint you guys, but these low prices won't be lasting for a long time. These days, OPEC members will meet and decide what will the further policy on prices be.

[willyoumind]

Well, the fuel prices fallen like rock and it's already reached below $70 right now...

Obviously, I didn't think it will have any big effects on the economy slump, where the economy crisis has spreading like wild fire in this moment...

[independent]

Over the past several weeks or about a month, fuel prices began to sharply go down. Now the price for one barrel is about 77$. Prices started falling when the American companies began to go bankrupt, one by one.
The reason that the price decreases is due to the diminution of demand for fuel on the world market.
Some experts believe that if this price for fuel maintains at this low level, it could save the world economy from the overall crisis.
What do you think about that?

There is a paradox - immediately when threat of financial collapse pass - oil prices will rocket up.
Demand can stay low only when economy is at regression state. Because oil producers are going
to deduct production, it means that when economy recovers - we will have even higher prices than
those 150$ / barrel that we saw last summer.

[Benn]

So you wanna say we have to choose something between avoiding financial crisis and low oil prices...
I would choose both of them.
OPEC can simply take actions for reducing the supply of oil, which will cause a subsequent price rise on the market.

[independent]

So you wanna say we have to choose something between avoiding financial crisis and low oil prices...
I would choose both of them.
OPEC can simply take actions for reducing the supply of oil, which will cause a subsequent price rise on the market.

I mean that nowadays economic growth correlates high oil prices.
We are running out of oil in the near future, so low prices can be seen only in exceptional situations,
like now when we have financial crisis broadening to an economical one. During growth period demand
is simply bigger than resources can permit (in long term).

[Yalta1945]

Every little bird nowadays tries to be an oracle. Dollar being 1.40 per Euro, they cried "oh, it gonna change soon!". Oil under 80 - they were sure it was the bottom. Haven't you noticed what the real experts were saying? You should have read Soros at the beginning of 2008. Have you ever seen the full list of the USA banks in trouble with their relevant data? Do you realize that the military and financial impact of the US is much bigger than you would like to believe? Have you noticed that Europe used to be overpriced? Investors were injecting funds into Europe despite clear signs of the slide in Europe.
(Generally, financial institutions are always cunning, a typical example being a certain Swiss bank who went out with information of its losses just after it had secured a new investment from an oil-rich Arab country - it's always so. )
We are at the unprecedented situation. By the way, this is not just about finances. So you'd better not engage in professing the future.
When it all ends, the world will not be the same it used to be. Unfortunately, I have no time to explain. I can only warn some commentators who seem to be quite sure in their analytical abilities that their analysis is now useless because the fault is on the paradigm level. It will take a lot of time to realize it.

[Steven]

Am not an expert, but will say the following: the financial crisis is caused because everything Europeans and Americans have consumed the assets too quickly. Resources that should have been consumed at present, were already used, and we are run out of options for replacing them. Surplus of crediting required a good control, but, it wasn't there.

[Terry]

Fuel prices have now took back their trend and they begin to grow, approaching again 70$/barrel. At the same time, we can see the European stocks are raising and getting back to normal. The US government has lowed down the interest rates.

[willyoumind]

After the oil prices had a tremendously dropped from the $140+ to under $70, it's about time to take back the fall and start the rising journey again...

[Faw_Peter]

Take a look at this chart in order to understand how the oil prices went down