Welcome to RCTalk
Come join other RC enthusiasts! You'll be able to discuss, share and private message with other members of our community.
This site may earn a commission from merchant affiliate
links, including eBay, Amazon, and others.
links, including eBay, Amazon, and others.
FastEddy
The Slowest Guy In Town
Supporter
RCTalk Vendor
greenwing7 said:
You need to read and listen to the proper sources.
Iran and its development of Nuclear weapons is the driving force on raising oil prices. This coupled with Chinas overwhelming demand for oil are the two largest reasons.
Trust me when I tell you that doubling the salaries and bonuses of everyone in the oil industry wouldn't do a damn thing to the price of fuel at the pump. "Big Oil Companies" profits have a play in it but not as much as you would think. Do the math, add .001 to a gallon sold and you will see the money isn't going to the "Big Oil Companies". I wish it was that simple. The issue is OIL not GAS. Gas prices are just an aftermath.
.21Rc10GT
Hardcore RCTalk User
Damn people with their cars that dont even need gas... I'm gonna be driving a 1967 mustang with a v-8... it should get like 15-20mpg when tuned right... My grandpa had the timing off... it was getting close to 10mpg... which would suck even more...
greenwing7
RCTalk Addict
- Messages
- 729
- Reaction score
- 0
- RC Driving Style
FastEddy said:
I did know about the demand in other developing countries driving the price of oil up, but I had no idea about Iran's nuclear program driving the price up, but thats cause I never thought of it but it makes perfect sense. I guess thats just simple math, they have something the entire world needs, they need $, the just up the price.... duah!
what is accounting for the profits by the big oil companies?
Nitrobuzzard
Useless NOOB!!
- Messages
- 1,123
- Reaction score
- 28
- RC Driving Style
- Bashing
- Racing
I'm driving a '02 Neon, getting around 27mpg back and forth to work. Last year I had an '02 Durango, gas prices started going up and with the pmt. of the Durango, I just couldn't see it. So, I sold it and got the Neon..........glad I did! I miss the big Durango but not the fuel economy at all!!
Prices here in Albemarle, NC are $2.60 $2.70 $2.80 first time I ever went over 20 bux on a fill up was last week...........
Prices here in Albemarle, NC are $2.60 $2.70 $2.80 first time I ever went over 20 bux on a fill up was last week...........
fisherman
RCTalk Addict
- Messages
- 1,126
- Reaction score
- 1
- RC Driving Style
my dad jsut got back from helsinki and he said where he was it cost $1.25 per lieter and my bro said his teacher said that in qutar I'm not sur ehow u spell it but they are spending $0.32 per lieter or gallon not sure but its crazy and i jsut heard that it is costing truckers like $650 to fill up I'm not sure if all this is true but thats crazy guess it jsut depends where u live.
RushRC
RCTalk Addict
- Messages
- 762
- Reaction score
- 0
- RC Driving Style
EVERYTHING that is moved by something that takes gas is effected by Gas prices.
Shipping is or will be higher, Food will higher, drinks, cigs, clothes, etc....
Retailers will have to raise prices to compensate for rising fuel costs
Restuarants will have to pay more for the food and drinks (esp seafood that has to travel from the coast) and this will raise prices.
We will have to pay more for these and other items simply due to the price of fuel.
You might also consider the age of the refineries in the US Most of them are 30+ years old. It cost millions and many years to get a NEW refinery built and it is cheaper to retrofit the old ones to meet tighter emmission laws. These changes do not make the refinery more effiecent. They are always have problems, fires, electrical outages etc. When the refineries can't produce the byproduct, gas/fuel, we pay for it at the pump.
Fear is also driving up the price of fuel. As is demand. When the demand continues to be strong as it is today, these companies are making huge profits and unless the demand recends the prices will definately continue to go up as the demand is there and the increased prices are supported and reinforced by our demand.
Eddy touched on a very important point we compete for oil with other countries notably China. Their deman is on the increase with no recension on the horizon so why would oil companies sale to the US for cheaper?? They wont! We must carry that burden.
I would say that it is very unlikely that prices will be dropping any time soon as there is no reason for the oil companies to lower the price when they are selling as much as they can produce at these prices.
whew.... hand cramp
Shipping is or will be higher, Food will higher, drinks, cigs, clothes, etc....
Retailers will have to raise prices to compensate for rising fuel costs
Restuarants will have to pay more for the food and drinks (esp seafood that has to travel from the coast) and this will raise prices.
We will have to pay more for these and other items simply due to the price of fuel.
You might also consider the age of the refineries in the US Most of them are 30+ years old. It cost millions and many years to get a NEW refinery built and it is cheaper to retrofit the old ones to meet tighter emmission laws. These changes do not make the refinery more effiecent. They are always have problems, fires, electrical outages etc. When the refineries can't produce the byproduct, gas/fuel, we pay for it at the pump.
Fear is also driving up the price of fuel. As is demand. When the demand continues to be strong as it is today, these companies are making huge profits and unless the demand recends the prices will definately continue to go up as the demand is there and the increased prices are supported and reinforced by our demand.
Eddy touched on a very important point we compete for oil with other countries notably China. Their deman is on the increase with no recension on the horizon so why would oil companies sale to the US for cheaper?? They wont! We must carry that burden.
I would say that it is very unlikely that prices will be dropping any time soon as there is no reason for the oil companies to lower the price when they are selling as much as they can produce at these prices.
whew.... hand cramp
StrechM
Hardcore RCTalk User
- Messages
- 2,143
- Reaction score
- 0
- RC Driving Style
- Bashing
- Racing
The rising price of energy is inflationary. Not only is it showing up in the reports it will affect almost everything that we the consumer consume.
Pretty tame this time when compared to what we have seen in the past.
As usual it will settle down a bit and we will become accustom to paying more for things. Wages will very gradually increase to the point of affordability then....years will pass (normally) and history will repeat itself again.
Pretty tame this time when compared to what we have seen in the past.
As usual it will settle down a bit and we will become accustom to paying more for things. Wages will very gradually increase to the point of affordability then....years will pass (normally) and history will repeat itself again.
FastEddy
The Slowest Guy In Town
Supporter
RCTalk Vendor
History repeat itself ????
NO WAY!! THAT WILL NEVER HAPPEN
NO WAY!! THAT WILL NEVER HAPPEN
Lessen
Super Awesome!
Supporter
StrechM said:
that's interesting. not to diss your take on this, but I was watching one of those economic talk shoes yesterday and the guy was basically saying that high fuel prices were absolutely not inflationary. Now I don't understand economics like some of you guys may but it seemed to me he was saying that the only comodity that is seeing substantially higher prices are oil based. Interest rates are still reasonable and majority of consumer products aren't yet making significant spikes. He was saying something about total inflation only being like 2%. That is vs. 10% in previous incidents (I think he was referring to the 80's but I'm not really sure.) Right now the american pocketbook is acting as the economies buffer. But as prices continue to rise the american people will be less and less able to absorb the cost. That is when things will get really rough I guess. I dunno guys, seems like we ain't seen nothin yet.
FastEddy
The Slowest Guy In Town
Supporter
RCTalk Vendor
Its an inflationary indicator.
When energy prices go up most things seem to follow in time.
Energy is one of the primary economy roots.
Even mortgage brokers have to drive to work.:
When energy prices go up most things seem to follow in time.
Energy is one of the primary economy roots.
Even mortgage brokers have to drive to work.
:StrechM
Hardcore RCTalk User
- Messages
- 2,143
- Reaction score
- 0
- RC Driving Style
- Bashing
- Racing
Lessen you are not disrespecting me.
This is right up my alley. First off I do real estate financing for a living and have for most of the last 25 years. You are right about not seeing hyper-inflation that I was hinting towards in my post but non-the-less we are seeing the signs of inflation. It is already happening at the wholesale level. We will see it at the retail level once the retail inventories deplete and contract prices have expired. We probably will not see large spikes, just a series of upticks until it is all priced in.
My first mortgage purchase/refinance loans had price tags of 16-18% back in the early 80's. I doubt that we will see that again with the aggressive stance by the Fed in this day and age.
When the Fed looks at the state of the economy they look at the whole picture and all of its components separately. When you read or hear the numbers that they represent you will also read or hear that by removing certain components they come up with indications of whether or not it is wide spread or contained to specific areas (this pertains to more than inflation). The largest movers have been the auto sector and removing that component the economy has not grown by very much.
Now energy will affect almost every aspect of our economy. As a matter-of fact we will go as far as to war over it like all industrialized countries do.
Here is the latest quote from my service at noon EST; I can give you more complex data if you want it. Energy is in the last paragraph.
**********************************************************
July's PPI came in the strongest since last October at 1.0% versus Bloomberg expectations of 0.5%. Energy contributed the most by increasing 4.4%. The core PPI increased by 0.4%, which was also above expectations of 0.1%. Today's data follows yesterday's Consumer Price Index data that showed headline prices moved up 0.5%, while core costs remained quite contained at 0.1%. Car prices contributed the most to the difference in the two reports' core rates. Excluding cars and light trucks, core PPI was only 0.2%. Nonetheless, year-over-year, the core rate is up 2.8%, the fastest pace in 10 years. Additionally, increased wholesale costs in excess of retail costs could pressure corporate profits if increasing prices cannot be passed along to the consumer.
In other economic news, the Mortgage Bankers Association Refinancing Index increased 5.0% to 2285.5 in the latest week. The Purchase Index edged up 0.1% to 499.3, signaling the home market remains solid.
The Energy Information Administration reported crude oil inventories increased by 0.3 million barrels from the previous week, which was above analyst expectations for a decline of 1.3 million barrels, per Bloomberg. U.S. crude oil inventories remain well above the upper end of the average range for this time of year. Distillate fuels, which include heating oil and diesel, increased 1.2 million barrels, but that was less than analyst expectations for an increase of 1.9 million barrels. Gasoline inventories sank by 5.0 million barrels, expectations were for a decline of 1.5 million barrels. Despite the bullish report, the price of crude declined following the news, which suggests recent prices could have been supported by speculative buying.
*******************************************************************************
The only reason that interest rates have remained low is because of the lackluster showing of equities (stocks). It makes bonds (loans) very attractive. Inflation is the worst enemy of the bond market. Believe me; I'm well in tune to that one.
Just my personal take; the price of gas will not drop to $1.50 again. With the adjustment for inflation why should it plus there is too much uncertainty in the Middle East, strike problems still plague Venezuela not to mention we’re headed for a probable huge hurricane season.
God, I hate this boring s*!t…!!!
Now it is getting closer to the time for me to program a brushless and a tx/rx.
This is right up my alley. First off I do real estate financing for a living and have for most of the last 25 years. You are right about not seeing hyper-inflation that I was hinting towards in my post but non-the-less we are seeing the signs of inflation. It is already happening at the wholesale level. We will see it at the retail level once the retail inventories deplete and contract prices have expired. We probably will not see large spikes, just a series of upticks until it is all priced in.
My first mortgage purchase/refinance loans had price tags of 16-18% back in the early 80's. I doubt that we will see that again with the aggressive stance by the Fed in this day and age.
When the Fed looks at the state of the economy they look at the whole picture and all of its components separately. When you read or hear the numbers that they represent you will also read or hear that by removing certain components they come up with indications of whether or not it is wide spread or contained to specific areas (this pertains to more than inflation). The largest movers have been the auto sector and removing that component the economy has not grown by very much.
Now energy will affect almost every aspect of our economy. As a matter-of fact we will go as far as to war over it like all industrialized countries do.
Here is the latest quote from my service at noon EST; I can give you more complex data if you want it. Energy is in the last paragraph.
**********************************************************
July's PPI came in the strongest since last October at 1.0% versus Bloomberg expectations of 0.5%. Energy contributed the most by increasing 4.4%. The core PPI increased by 0.4%, which was also above expectations of 0.1%. Today's data follows yesterday's Consumer Price Index data that showed headline prices moved up 0.5%, while core costs remained quite contained at 0.1%. Car prices contributed the most to the difference in the two reports' core rates. Excluding cars and light trucks, core PPI was only 0.2%. Nonetheless, year-over-year, the core rate is up 2.8%, the fastest pace in 10 years. Additionally, increased wholesale costs in excess of retail costs could pressure corporate profits if increasing prices cannot be passed along to the consumer.
In other economic news, the Mortgage Bankers Association Refinancing Index increased 5.0% to 2285.5 in the latest week. The Purchase Index edged up 0.1% to 499.3, signaling the home market remains solid.
The Energy Information Administration reported crude oil inventories increased by 0.3 million barrels from the previous week, which was above analyst expectations for a decline of 1.3 million barrels, per Bloomberg. U.S. crude oil inventories remain well above the upper end of the average range for this time of year. Distillate fuels, which include heating oil and diesel, increased 1.2 million barrels, but that was less than analyst expectations for an increase of 1.9 million barrels. Gasoline inventories sank by 5.0 million barrels, expectations were for a decline of 1.5 million barrels. Despite the bullish report, the price of crude declined following the news, which suggests recent prices could have been supported by speculative buying.
*******************************************************************************
The only reason that interest rates have remained low is because of the lackluster showing of equities (stocks). It makes bonds (loans) very attractive. Inflation is the worst enemy of the bond market. Believe me; I'm well in tune to that one.
Just my personal take; the price of gas will not drop to $1.50 again. With the adjustment for inflation why should it plus there is too much uncertainty in the Middle East, strike problems still plague Venezuela not to mention we’re headed for a probable huge hurricane season.
God, I hate this boring s*!t…!!!
Now it is getting closer to the time for me to program a brushless and a tx/rx.
Last edited by a moderator:
Revo Rancher
Hardcore RCTalk User
Right now on Fox Cable News they are discussing oil. The expert is stating that every time we have an "Oil Shock" we have a recession. However, so far, they are calling this an "Oil Spike". They seem to believe that this is an inflationary adjustment. Like Eddy and even Lessen touch on, oil will lead, then wages will adjust on the far end. Look at it like this, the housing market has had it's boom, now comes oil, and if it does not cause a recession, wages will eventually adjust. This will be more in compensation to the correspondingly higher expenses of daily living that occurred and started as a result of the higher energy prices. If food, heating and cooling costs and household products all increase due to the higher oil prices, then wages will become an issue for employers. It is at this point either a recession and the accompanying high unemployment starts, or the market reacts and makes a shift to correspond to the higher costs associated with living. I predict this will occur about the time of the next national election. The last time this occurred, Jimmy Carter was elected, and the US had one of it's worst recessions and highest interest rates of all time. I cannot say Carter was the direct cause, but he certainly could not fix the problem, either.
Someone questioned taxes and war. No correlation. Federal taxes on fuel have not increased. Import duties or taxes neither. It simply comes down to higher demands by India and China, plus uncertainties in the Middle East. Don't forget they trade in the world market, including stocks, too.
Someone questioned taxes and war. No correlation. Federal taxes on fuel have not increased. Import duties or taxes neither. It simply comes down to higher demands by India and China, plus uncertainties in the Middle East. Don't forget they trade in the world market, including stocks, too.
StrechM
Hardcore RCTalk User
- Messages
- 2,143
- Reaction score
- 0
- RC Driving Style
- Bashing
- Racing
I agree with you Revo Rancher. All is connected.
It wasn't really Jimmy Carter; it was Paul Volker's reign at the wheel of the Fed and his crew's Johnny Come Lately approach to stop run away inflation in its tracks. The current admin always takes the heat.
It wasn't really Jimmy Carter; it was Paul Volker's reign at the wheel of the Fed and his crew's Johnny Come Lately approach to stop run away inflation in its tracks. The current admin always takes the heat.
Revo Rancher
Hardcore RCTalk User
Hey Stretch, you posted while I was, but I went back and read your post. Pretty much the story we have been getting. Good summary. I too felt that some of the price increase was speculative as to the market. Looks like the story feels the same way.
As to Carter, I was a freshman in HS when he was elected, but I had enough econ classes in college to know he was not the answer to the problem and he did not have the administration to solve it. That is one reason why I mentioned the election cycle. Each new pres comes in and whether or not the prior admin was doing a good job in their respective positions, they usually end up cleanign house and putting in their picks for each admin and cabinet posts. This causes a greater potential for economic chaos, and coupled with an economic index running into poor numbers, can trigger a recession. Holding off massive inflation as a result of a recession, no matter how mild or severe, should be the Fed Reserve Chairman's job, but in all reality most fail at this. I, for one, will be real sorry to see Greenspan retire or go.
The upticks you mention are the most important thing to watch. These tell us if all the micro adjustments that the personal, local and family economies are adjusting timely and in accordance with the industrial complexes manufacturing output. Inventory does seem to be weighing heavy on NYSE's mind, though. Too many cars sitting on the factory docks, and too large a foreign trade deficit is causing US manufacuters to have a glut of inventory of items noone wants, yet, demand of other certain items are causing low inventories. Very dangerous to be this unbalanced. Eddy seems to have trended this as well.
As to myself, I saw the dot-com bust coming in about 1998, and had already shifted almost everything I had from stocks and mutual funds into bonds and foreign stock funds. I even spec'd Euros. I survived the 1999 dot-com bust with little or no loss, and now am even looking at early retirement if I can keep my momentum going for another 5 years or so. I am 43 now.
As to Carter, I was a freshman in HS when he was elected, but I had enough econ classes in college to know he was not the answer to the problem and he did not have the administration to solve it. That is one reason why I mentioned the election cycle. Each new pres comes in and whether or not the prior admin was doing a good job in their respective positions, they usually end up cleanign house and putting in their picks for each admin and cabinet posts. This causes a greater potential for economic chaos, and coupled with an economic index running into poor numbers, can trigger a recession. Holding off massive inflation as a result of a recession, no matter how mild or severe, should be the Fed Reserve Chairman's job, but in all reality most fail at this. I, for one, will be real sorry to see Greenspan retire or go.
The upticks you mention are the most important thing to watch. These tell us if all the micro adjustments that the personal, local and family economies are adjusting timely and in accordance with the industrial complexes manufacturing output. Inventory does seem to be weighing heavy on NYSE's mind, though. Too many cars sitting on the factory docks, and too large a foreign trade deficit is causing US manufacuters to have a glut of inventory of items noone wants, yet, demand of other certain items are causing low inventories. Very dangerous to be this unbalanced. Eddy seems to have trended this as well.
As to myself, I saw the dot-com bust coming in about 1998, and had already shifted almost everything I had from stocks and mutual funds into bonds and foreign stock funds. I even spec'd Euros. I survived the 1999 dot-com bust with little or no loss, and now am even looking at early retirement if I can keep my momentum going for another 5 years or so. I am 43 now.
StrechM
Hardcore RCTalk User
- Messages
- 2,143
- Reaction score
- 0
- RC Driving Style
- Bashing
- Racing
Jimmy Carter would have made a better Billy Graham type if you know what I mean.
Nothing against Billy Graham or the like, it was just his approaches to problem solving and leadership qualities that most would prefer from someone sitting in the Oval Office. Paul Volker and crew did not take the aggressive stances that we've seen from Alan Greenspan and his cronies. I too wish that he would remain in office.
This last real estate run has been a doosey. This past year has shown some high ups and downs. 7 years in all but it is coming to an end very shortly in the west. New listings here outnumber sales 2 to 1. The "Wealth Effect" from equity will have a major impact on the economy when it does slow way down or reverse its corse. Some areas have already felt it with some to follow a little later. None the less it has lasted longer than any other run in my work lifetime.
Nothing against Billy Graham or the like, it was just his approaches to problem solving and leadership qualities that most would prefer from someone sitting in the Oval Office. Paul Volker and crew did not take the aggressive stances that we've seen from Alan Greenspan and his cronies. I too wish that he would remain in office.
This last real estate run has been a doosey. This past year has shown some high ups and downs. 7 years in all but it is coming to an end very shortly in the west. New listings here outnumber sales 2 to 1. The "Wealth Effect" from equity will have a major impact on the economy when it does slow way down or reverse its corse. Some areas have already felt it with some to follow a little later. None the less it has lasted longer than any other run in my work lifetime.
FastEddy
The Slowest Guy In Town
Supporter
RCTalk Vendor
NOW I'm PISSED AT THE PRICE OF FUEL!!!
I went to fill up for the first time in 3 weeks. This is normal for me. I'm not bitching about the price, like I said the price is the price. Pay it or walk. What I'm upset about is that the pumps here cut off at $48.00 at the price of 2.86 for low test this isn't enough to fill my tank. SO I put the card back in for the second time to top off the last 8th tank or so and it wouldn't take my card for a 2nd time. FUCKERS!! On my way I went to go to do some shopping. I whip out the CC at Safeway and it was declined!!!!!! The CC company turned it off thinking it was stolen or left at the gas station. ERRRRRR........
I went to fill up for the first time in 3 weeks. This is normal for me. I'm not bitching about the price, like I said the price is the price. Pay it or walk. What I'm upset about is that the pumps here cut off at $48.00 at the price of 2.86 for low test this isn't enough to fill my tank. SO I put the card back in for the second time to top off the last 8th tank or so and it wouldn't take my card for a 2nd time. FUCKERS!! On my way I went to go to do some shopping. I whip out the CC at Safeway and it was declined!!!!!! The CC company turned it off thinking it was stolen or left at the gas station. ERRRRRR........
