Originally Posted by
Greg Bockelman
Does anyone think that the fuel prices are anything other than a momentary blip? Chances are that fuel prices WILL go back up.....
I'm not convinced the price is market-driven. If it were, wouldn't OPEC turn off the spigots?
I think this was a US-led request to kill the economies of our two biggest problems right now: Russia, and ISIS/Da'esh (they hate that name, so I use it).
Say the US asks them to flood the market. OK, what's in it for OPEC?
1. If Da'esh crushed, OPEC fat cats are less likely to have the same thing (Islamist insurgecy) in THEIR countries.
2. Huge surge in US fracking industry has all but stopped, since no longer economically viable. Increased US output was going to put a major dent in OPEC's wallet.
3. Americans, thinking gas will be cheap, buy big cars, start new businesses, etc.
4. Russia backs out of the Ukraine, ISIS crumbles. OPEC Response: Gas prices rapidly escalate, OPEC makes more money than they lost because of increased demand from growth in national economies and reduced conservation.
5. Fracking industry loses 3-5 years of headway as field workers moved on to other jobs. Corporate expertise is lost; less efficient initially while training newcomers.
That's how I see it. I don't think the low prices will make it past September.