Oil tumbles more than 9%, breaks below $100 as recession fears mount

  1. Price at the pump is determined both by the spot price of oil and by the cost of hedging future variation in the spot price of oil. So while a reduction in the spot price can help, to actually see a significant reduction in price at pump, we also need the volatility of the spot price to drop, since volatility is a key determinant of the price of hedging contracts.

  2. Couldn't this help avoid a recession? Like prices go down so gas prices go down (still need more refineries back up to really bring it down) so then prices of goods goes down lowering inflation while unemployment is still low?

  3. It probably could, if oil companies actually ended up charging less for their final products, but I’d have to guess they will still continue to gouge everyone along the supply lines and take in record profits.

  4. The negative I would assume they are referencing is the retirement accounts and people invested in oil, right?

  5. In recent recessions oil peaks longer and is the last in the market to drop. Usually the last to bottom too. Expect oil prices to plummet in the next 6 months. Especially since Target/Walmart are are having to lower prices because they have way too much inventory.

  6. Unfortunately today’s gas prices have little or nothing to do with oil prices and a lot to do with profits

  7. Future Forecasters - We don’t see consumers having any money to spend on gasoline or heating oil this winter, In fact, unemployment will soar, Millions will be made homeless and struggle to eat

  8. Oil prices up -> oh no high energy prices means recession. Oil prices drop -> oh no prices collapsing means recession

  9. "Recession is transitory! Rich people will trickle money down to you! Poor people are loaaaded right now with extra stimmy money from last year. Invest in stocks like Robinhood!"

  10. The market finally makes sense again. The scam was all the meme stocks, the SPACs, crypto, all that utter horseshit and the endless parade of morons who bought into it.

  11. It might be possible with this crazy upside down economy for oil to stay firm in the 90’s for rest of summer. Still means incredible returns for oil companies, drillers, rigs, etc. 2nd quarter results will be all time highs but still could have upside for high oil prices. We don’t need 110-120 bucks a barrel for great earnings

  12. I kinda wonder if the antidote to inflation / recession fears is actually MORE capex, not less. A lot of our current inflation is due to the supply chain dynamics. It’s so hard for factories to receive raw materials, and equally as hard to get final products onto store shelves. Seems like the world is desperately underdeveloped regarding capacity. Anyone have thoughts?

  13. Lol, Oil and Nat Gas will be with us for a long, long, long time. Nothing else is as effective and cheap.

  14. Big Oil doesn’t set the price of a globally traded commodity. They literally have no control over the price of their product.

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