
Adjusting the Taps on Oil Price - rfreytag
http://www.economist.com/blogs/graphicdetail/2016/01/daily-chart-6
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salimmadjd
OT: I researched the savings to American pockets. Going from $4/gallon ->
$2/gallon saves American $500 Billion annually. I included the savings from
the cost of food as well (food cost had a direct correlation to oil prices).

How much of that is going to be pumped back into the economy is unknown, but
the amount is sizable. You would also expect, some amount of savings globally
on food and fuel. So net, this might give the global economy a bit of a boost.

OT OT: It also surprised me why Obama administration never, framed the Iran
Nuclear Deal as a $2/gallon or $1/gallon victory for American people. It would
have been more sticky.

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TheCowboy
Things have changed. A lot of states' new and old oil industry experiences a
contraction at prices that low.

Alaskan residents used to get cut a check, but that might be going away due to
budget shortfalls. Then you have plenty of lost jobs in the shale states.

It also should not be the responsibility of politicians to promise cheap
gasoline. It might be a quick political victory when it's easy to promise, but
it leads to bad policies when it gets complicated.

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revelation
Saudi-Arabia and others fund their regime and frankly, standard of living,
primarily through oil profits, in the same way that Google finances self-
driving cars R&D and other projects through ads.

So sure, they can profitably extract oil at $20 price point, but that doesn't
pay for their state budget. They really need a price at $80+. Meanwhile,
western producers don't care very much; if the price is high, they can export,
if the price is low, that massively benefits their other industry while the
oil part hibernates.

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myth_drannon
Tell that to Canadians that had their currency dropped like a stone. They need
to feed their families while the prices of fresh food doubled

~~~
tosseraccount
Fact check: ( source :
[https://www.uoguelph.ca/foodinstitute/system/files/Food%20Pr...](https://www.uoguelph.ca/foodinstitute/system/files/Food%20Price%20Report%202016%20English.pdf)
) Food Price Report 2016 UNIVERSITY OF GUELPH ECONOMIC BRIEF 4 Prepared by the
Food Institute of the University of Guelph 12/10/2015 _" In 2014,the Food
Institute of the University of Guelph predicted that overall food prices in
2015 would rise by up to 3.0%. As stated in our revised report in February
2015, this prediction was based on a much stronger Canadian dollar versus the
American currency. For 2015, overall food price inflationary patterns were
consistent with our predictions. "_

I know you said "fresh food", but it is January. It would not be surprising
that _some_ prices double around this time. I know that "fresh strawberries"
are triple the price where I live.

