Wall St. falls with oil; CPI data stokes rate hike talk
I found this article to be interesting because i like to follow the price of oil and even though the price has been going up and down day to day the overall trend is that oil prices have been decreasing. Most Americans are loving the low oil prices because they are filling up there vehicles for less. companies are also enjoying low prices cause this allows them to keep there prices the same but getting more profit because the cost of transporting the good has decreased. How low will the stock market and oil prices fall until the government steps in to help put so that we don't feel the economic stress to much.
link: http://finance.yahoo.com/news/futures-lower-oil-rally-falters-123423527.html
Obviously the price of oil has been a big talking point for global consumers over these past few months. With a glutton of oil, there is just simply not enough intense demand to keep prices high. Since the US discovered and is utilizing more of our natural oil reserves, these low prices are not helping some of the big American oil players. While the price of oil will inevitably go up at some point, it is interesting to see for now what may happen in the near future.
ReplyDeleteI agree with Trey in the fact that the price of oil will go up in time. However, in the present, there are predictions that the price of a barrel could fall below the production cost. While many firms will continue to produce, it is inevitable for firms to either leave the market or to shut down production. It will be interesting to see the impact of falling prices on smaller economies and small firms that cannot afford to offer such low pricing.
ReplyDeleteI agree with Trey in the fact that the price of oil will go up in time. However, in the present, there are predictions that the price of a barrel could fall below the production cost. While many firms will continue to produce, it is inevitable for firms to either leave the market or to shut down production. It will be interesting to see the impact of falling prices on smaller economies and small firms that cannot afford to offer such low pricing.
ReplyDeleteCompanies that use plastics are benefitting greatly from the drop in oil prices. It costs far less to produce plastics than it did a year ago. I wonder if certain governments will implement price floors on oil in coming years.
ReplyDeleteThere has been on oil boom in Ohio other various places in the U.S. Oil companies in Ohio are already heavily slowing down the output of their wells because the price of a barrel. I believe that they are waiting for prices to rise again.
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