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Major "oil price war" between Saudi Arabia/OPEC and Russia has begun, US producers expected to be "collateral damage"


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So I was already starting to tense up about declining cinema attendance due to Covid fears, and now oil is about to tank which will really hurt the Houston economy. Was hoping to expand our employee benefits again this year but may have to put that on hold for a bit. Bummer.

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9 minutes ago, sblfilms said:

So I was already starting to tense up about declining cinema attendance due to Covid fears, and now oil is about to tank which will really hurt the Houston economy. Was hoping to expand our employee benefits again this year but may have to put that on hold for a bit. Bummer.

 

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This is going to fuel alt-right rise in Canada, as well. Right-wing populism is surging in the west, and a Russian-backed separatist movement in Alberta is surging. Nothing serious yet, but it could soon get out of the control of politicians if they are not careful. There is a view that central and eastern Canada are trying to hurt the west on purpose due to the west's oil economy...even though it's just the global market not wanting our expensive oil. But politicians turn that lack of demand into claims that the federal government is "stopping" production.

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Raise the gas tax 10 cents and put 100% of the revenues towards decarbonization projects. If prices are going to drop as much as they say, ain't nobody gonna notice a difference of 10 cents

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1 hour ago, Ricofoley said:

Raise the gas tax 10 cents and put 100% of the revenues towards decarbonization projects. If prices are going to drop as much as they say, ain't nobody gonna notice a difference of 10 cents

 

Nonsense.  Institute a proper carbon tax and then give all the proceeds back to each citizen on a monthly basis.  Don't let the government have any of that money.

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6 minutes ago, mclumber1 said:

 

Nonsense.  Institute a proper carbon tax and then give all the proceeds back to each citizen on a monthly basis.  Don't let the government have any of that money.

Hot take: public infrastructure spending is giving it back to the people.

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Ugg. This shit is already hitting the canadian dollar. This country needs to stop having it's dollar pegged on oil so much, the service sector is what's driving a lot of growth (specifically tech in Ontario).

 

3 hours ago, CitizenVectron said:

This is going to fuel alt-right rise in Canada, as well. Right-wing populism is surging in the west, and a Russian-backed separatist movement in Alberta is surging. Nothing serious yet, but it could soon get out of the control of politicians if they are not careful. There is a view that central and eastern Canada are trying to hurt the west on purpose due to the west's oil economy...even though it's just the global market not wanting our expensive oil. But politicians turn that lack of demand into claims that the federal government is "stopping" production.

I kind of doubt it atm. I think the last poll I read had both Kennedy & Wexit support down.

 

1 hour ago, mclumber1 said:

Nonsense.  Institute a proper carbon tax and then give all the proceeds back to each citizen on a monthly basis.  Don't let the government have any of that money.

This is what Canada has but swap monthly with yearly.

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57 minutes ago, mclumber1 said:

 

What would be an example of a good % and a bad % for treasury bonds? ELI4.

No such thing exists.

 

It's neither "good" nor "bad" - the yield is merely a function of demand for the US Treasury bonds.

 

As demand increases, the premium you would pay over the face value of the bonds to purchase them also increases accordingly.  However, because the bonds are paying a fixed interest rate, their "yield" declines because the interest paid remains constant while their purchase price has increased.

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4 minutes ago, SFLUFAN said:

I would not be surprised in the least if we see a negative Federal funds rate in the near future.

 

Just like the Imbecile wanted.

 

 

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1 hour ago, SFLUFAN said:

No such thing exists.

 

It's neither "good" nor "bad" - the yield is merely a function of demand for the US Treasury bonds.

 

As demand increases, the premium you would pay over the face value of the bonds to purchase them also increases accordingly.  However, because the bonds are paying a fixed interest rate, their "yield" declines because the interest paid remains constant while their purchase price has increased.

However the violent decline in yields is largely because investors are looking for a safe place to park their money, which means bonds are signaling terrible growth and investors have no confidence in putting their money into riskier assets like stocks.

 

These moves are much more drastic than equities which makes me think equities have a good deal further to drop. Thinking back to the financial crisis, US bonds never got this low, and never have.

 

The bond market is much larger than the stock market, and it’s pricing in a recession. 

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7 minutes ago, Keyser_Soze said:

I’m still seeing gas at 3.55 so maybe prices haven’t dropped yet 

Filled up for 1.88 in Houston after paying 3.37 in LA Saturday

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