I wonder why so many people are so concerned about oil price

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I wonder why so many people are so concerned about dropping oil prices i think it's good think for everybody here in Europe and USA?

I think most concerned are filthy riches bastard who used that they robing honest Europeans (Poles, Germans, Brits and so on) and Americans they saving.
Low oil prices are very good for ordinary people. Only riches bastard can complain, but we shouldn't be concerned about them

What do you think?

https://answers.yahoo.com/question/inde ... 757AAKe7Ic

What is happening to the best of my understanding is the Saudis(and the other Arab Gulf countries) are flooding the market right now and waging economic warfare against US domestic energy, Russia, and Iran. They have huge reserves of cash and can produce oil at a much much lower price than anyone else in the world so their hope is to basically to run the competitors out of business and achieving political goals against Russia and Iran whom they've been engaged in a proxy war with in Syria and Iraq. Russian and Iranian oil aren't profitable under I think $100/barrel and we can already see the effect this has had on the Russian economy. For the consumer particularly here in America or Europe, this is great and a nice stimulus but the worry I think is basically that once the Saudis run their competitors out of business that they'll cut production and raise the prices once again and that these competitors wouldn't reinvest knowing that the Arabs can do this any time they want. Here in America being energy independent has been a big political goal so we wouldn't be so beholden to these oil interests in the Middle East so with this in mind, now is probably the time to invest in infrastructure and be prepared for when these oil prices inevitably go back up.

Lower oil prices are good for everyone except those countries that produce oil and whose economies depend on it. When they start to collapse (as Russia, Iran, Venezuela and soon some middle east nations) it creates conflict and tensions in a region that can have economic and military repercussions.

Two answers:

Junk bonds & derivatives.

That is why the oil industry is spazzing about this. They have to pay back loans.

It's really simple. There are production costs involved. Once oil prices dip far enough it costs more to produce oil than what they're selling it for, then production becomes a hobby instead of a business. Most people aren't going to go to all that trouble in the oil business out of the goodness of their own hearts. They have mouths to feed at home.

And before you say the billionaires are crying over lost profits, keep in mind they actually enjoy being in the oil business and can't continue to provide those goods and services completely on their own. They get no enjoyment out of it unless they have people in the field. Without making a profit, they can't pay employees, and without employees, they can't stay in business. So unless you have thousands of nice people willing to help you on oil rigs out of the goodness of their hearts and donating money and volunteering, you have nothing.

People who provide oil deserve appropriate compensation for the time spent away from their homes and families to do it, and if they enjoy what they do and are talented at what they do, they deserve to be rewarded for their time and effort. That's the way it works in ANY business. If oil prices bottom out and the oil companies can't even give it away, the oil companies are going to go under, jobs will evaporate, and the USA will be at the mercy of the OPEC for fossil fuel.

The US will be in a pretty awkward position if this doesn't turn around. In my opinion, the US should implement an oil embargo against the people responsible for this. The US can't possibly output ALL the oil it needs, so supplies will be drastically cut which, in turn, will drive oil prices back up. The Saudis et al will be especially screwed once they lose one of their biggest markets. So middle eastern countries will have to choose between attacking the US/US interests, or they'll have to play nice. It's awkward for US right now because we're too busy trying to make friends, and sadly this isn't going to impress anyone.

If we were to stick to our guns, what would eventually happen is some fanatical fundamental extremists would hijack a plan and knock down another NY skyscraper or two. Next we'd pump billion of $'s into our military, and bomb another middle eastern country back to the 3rd world. We'd seize their oil industry and prices would once again stabilize.

Alternatively, US oil companies could ask for government bailouts, essentially putting the US government in direct control over domestic oil. That would piss off a lot of people, and a lot of Congressmen would lose midterm elections. Oil company owners would get sick of Gubmint Oil telling them what to do and start figuring out ways to drastically reduce costs in order to pay back their loans in full within 2-3 years, well ahead of their 20-year plan. Whether through war or an embargo, we'd finally make believers out of OPEC, they'd start playing nice again, and everybody would get to play in the sandbox again.

I'm not knocking cheap gasoline, btw. I love it. I just filled up the family van for $1.69 (loyalty discount at grocery store). I actually had to go back to the window to pick up my change. People might be loving the low prices right now, and that's all well and good. But you have to think about the people on the other side of the fuel pump. If they can't feed their families and pay their workers, we're going to be in serious trouble. I can handle paying between $2.00-$2.50/gallon. I just don't want to see bad things happen to good people, and the potential damage to our economy in the near future is frightening.

I never complain about low gas prices because they really do help a lot of people. These are folks who can barely make ends meet and struggle everyday. They could have kids that go hungry and live from pay check to pay check. I am glad they are getting a break.

i don't care about the oil people meh. its 2.30 here so it might feel ok if it goes back up to you at 1.60ish but if it goes back up it'll mean paying $4ish here which is where it was about 4 months ago. people can't afford that which means less going out and less food.

That was only after a 30￠ discount. I shop at Kroger almost exclusively, and the points on the discount card add up. It only happens once a month. The rate things are going, I'll be paying around $1.90/gallon a week from now.

There was a worldwide downturn before the recent recession, A falling economy smashed other bubbles.

America printed money, bailed out everything, bought the stock market, and made he numbers look good, while racking up trillions of debt for the future.

Europe went with austerity and near recession, to reduce debt.

Recently, there is a downturn of demand, China exports are down, all world industry, and oil production continued at the same rate. After the excess filled all storage, the price fell.

Europe is near recession, America exported its industry, China is starting a credit bubble to sell excess production to their own people. World oil production is growing, as more producers seek fewer buyers.

Russia has a contract to supply gas to Europe, Turkey, and China. The technology that was sanctioned would have lead to more excess production.

Everyone bet on a bigger future, and when it did not happen, they still have the larger debts.

Recent world economy was computers in the 90s and China industrial in the 00s.

In the 80s Savings and Loan were deregulated, used for real estate speculation, and the crash came in 90.

S&L,Dotcom, Housing, China, were all bubbles. We do not have any current bubble material.

During that time we racked up 17 Trillion of debt, and when China slides, they hold 4 Trillion in US Bonds.

The US Government has an income of 2 Trillion, ads another to debt each year, so if China cashes out their Bonds to feed their people, they have to be paid. China's main buy American plan has been our grain lands. For $4 Trillion they could buy several states, and bring their own people in to work it.

All goverments claim they need $80 oil, or puppies die. When the Shrub took office oil was $13. Hence, all governments lie.

They claim $3 gas as a gift from a wise Congress, but it was $1 when the Shrub came. An ice age would be claimed as the government fighting global warming.

We have over production of all things caused by excess profits being reinvested in more production.

The exact amount equals all tax cuts since Regan.

If there had been no tax cuts, the government would not have run up $17 Trillion in debt.

It is not the price of oil, it is the fall of the PetroDollar. That was how we exported inflation to the world. Without it we have to work and pay our debts. The American people are in debt about $75,000 each. That is what you get when Wall Street and the Banks have friends in Congress.

Thank you for your business, will that be in cash, gold, or farmland?

Thanks to a 70 CENTS/GALLON award at Kroger, I was able to fill my tank at only $1.229/gallon price! It cost me like 15 bucks to fill up, the cheapest I can't even remember since when!

Normally, it has cost about $40 to fill up.