Economic views of fuel prices.
Well I have yet to see this kind of threrad so I'll go ahead and start it. My buddy goes to school for economics and me and him had a long sit down talk about fuel and such. He laid out to me a few good points that I never would have thought of.
I know alittle about the stock market and such, but he tells me that if you want to see what the price of fuel is going to be, look at the "futures" of gas and heating oil. I guess OPEC met last week or so and they are not going to cut oil production or increase it because they are predicting a dramtic decline in demand for the second quarter. In-addtion to this the US demand for oil will drop.. but Inda and China are still consuming at a much larger rate then ever before. Bottom line.. The us economy is in the tank and the dollar is ultra weak... So in some sort of elebrate scheme that is way above my understanding, the US economy used to be a "fail-safe" for investors(mostly overseas). Since were in a recession(thats what my buddy calls it) and the dolalr is so weak.. there is no stability. The only thing stable right now is the oil and energy industry. So those overseas invesotres ahve pulled out of the US economy and invested into oil as their fail safe.
Also, getting back to OPEC, his peronal view is that there is plenty of OIL and there isnt really a need to have it up this high. But americans are to acustomed to there "5 car families" so OPEC will let production remain while the price is outta control... b/c america will pay it.. However, Most of it(high oil prices) is due to the current suck of the US dollar. I think he said the US dollar has lost 60% of whatever since 2006 and the Euro has lost 30%.
..not to mention we are shelling out Billions for a war.
Kinda interesting, but I felt it shead some light on the topic.