Monday, December 1, 2014

Crude oil for January delivery...

...was down almost one percent when I started writing this post a few minutes ago, after a drop of around ten percent on Friday. Is that a good thing? Is it supply-driven, as the United States, Russia and OPEC keep pumping oil at a record rate? Will it just act as one big tax cut for American businesses and consumers?

Or is this all demand-driven, as the economies of Europe and China slow down, requiring less energy?

Take your pick. (We should find out in a few months.)

But if it's the latter, and the U. S. goes into a recession in 2015, what does that mean for the 2016 presidential election? Could a recession, as I've argued before, derail Hillary's chances for the White House? And, more ominously, will a deep recession (if we get one at all), bring back the tea party? If things get really rough in the next year or so, could we be talking about a President Mike Huckabee, or even a -- gulp! -- President Ted Cruz? God help us.

Remember the 1930s? Anything can happen.
A day after OPEC voted not to cut oil production in response to a weakening global market, prices plummeted to their lowest level since 2010. - See more at: http://columbiadailyherald.com/news/business/oil-prices-stocks-sink-lower-following-opec-meeting#sthash.Nbg80FIp.dpuf

1 comment:

Jason shwartz said...

This really is something that is interesting to think about. I personally think that there are a lot of things that can end up changing what happens with the oil business. With some of the car industries moving towards electric and hybrid cars, it seems like it is making the demand lower. That could cause some big changes though for sure. Thank you for sharing. http://www.foxfuel.com/will-call/